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Blencowe Resources #BRES – Orom-Cross Samples to Labs for Preparation leading to Maiden JORC Resource and Metallurgical test work

Blencowe is pleased to announce that core samples from its recently completed 69-hole diamond drill program (for approx. 1,950 meters), at the Orom-Cross graphite project in Uganda, have been dispatched to an accredited SGS laboratory in Tanzania. The samples will now be prepared and then forwarded to SGS in South Africa to enable completion of the studies and verification by SGS ahead of inclusion in the Company’s maiden JORC Resource at Orom-Cross, expected in Q4 2020.

Additional samples will be sent to SGS in Toronto, one of the leading technical experts in graphite processing, to complete Phase Two metallurgical test work and identify optimal concentrate figures for a high quality, large flake product. These results are expected in Q1 2021.

Both the JORC Resource and the metallurgical test work are integral parts of the next stage of development and follow on from a highly successful drilling campaign in 2020 at Orom-Cross. Blencowe intends to incorporate these results to present a Feasibility Study in 2021, which will deliver first commercial outcomes for the project.

In other corporate activities, Blencowe can advise one of the subscribers in the recent admission to the standard list of the main market (“Admission”), Apul Investments, was unable to deliver on its subscription commitments. Consequently, the Board has now replaced Apul Investment’s subscription with existing and supportive shareholders at the same terms being 6p per subscription share. The CEO and COO being Mike Ralston and Iain Wearing respectively have participated in this reallocation and subscribed for £12,500 each (208,333 shares each).

Executive Chairman Cameron Pearce commented;

We have successfully navigated the initial phase of post-acquisition work at Orom-Cross, designed to underline its size and quality as a world class graphite asset. We are now moving into the next phase where we intend to deliver commercial outcomes through 2021 and beyond.”

“Blencowe remains highly optimistic on the longer term outlook for flake graphite, particularly as a key component of the lithium-ion battery that will power electric vehicles and store renewable energy from various sources.  As the world emerges from Covid-19 many analysts are forecasting an even stronger bias towards growth in renewables than ever before. Having a substantial project within our Company that will deliver a critical element of this seismic shift will be very valuable, particularly given current forecasts of a substantial flake graphite shortage from 2025 onwards.”

PDMR Notification Form

1  Details of the person discharging managerial responsibilities / person closely associated  
a)  Name   Michael Ralston ATF the Ralston Family Trust
2  Reason for the notification  
a)  Position/status   Chief Executive Officer
b)  Initial notification /Amendment   Initial Notification
3  Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor  
a)  Name   Blencowe Resources PLC
b)  LEI   213800UXIHBIRK36GG11
4  Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted   
a)  Description of the financial instrument, type of instrument Ordinary shares 
  
Identification code GB00BFCMVS34
  
b)  Nature of the transaction   Purchase
c)  Price(s) and volume(s)     
  Price(s)Volume(s) 
  £0.06208,333 
     
d)  Aggregated information  
  
– Aggregated volume208,333
  
– Price£12,500
  
e)  Date of the transaction   18/9/2020
f)  Place of the transaction   Outside a trading venue
1  Details of the person discharging managerial responsibilities / person closely associated  
a)  Name   Iain Wearing
2  Reason for the notification  
a)  Position/status   Chief Operating Officer
b)  Initial notification /Amendment   Initial Notification
3  Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor  
a)  Name   Blencowe Resources PLC
b)  LEI   213800UXIHBIRK36GG11
4  Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted   
a)  Description of the financial instrument, type of instrument Ordinary shares 
  
Identification code GB00BFCMVS34
  
b)  Nature of the transaction   Purchase
c)  Price(s) and volume(s)     
  Price(s)Volume(s) 
  £0.06208,333 
     
d)  Aggregated information  
  
– Aggregated volume208,333
  
– Price£12,500
  
e)  Date of the transaction   18/9/2020
f)  Place of the transaction   Outside a trading venue

For further information please contact:

Blencowe Resources PlcSam Quinn (London Director)www.blencoweresourcesplc.comTel: +44 (0)1624 681 250info@blencoweresourcesplc.com
Brandon Hill Capital LimitedJonathan Evans (Corporate Finance)Tel: +44 (0)20 3463 5000jonathan.evans@brandonhillcapital.com

About Orom-Cross Project

Orom-Cross is a substantial graphite project in northern Uganda.  Blencowe Resources acquired 100% of this asset in April 2020 following extensive due diligence and a capital raise of £2 million in the UK.  These funds will be utilised to advance Orom-Cross through to a maiden JORC Resource, followed by a feasibility study and ultimately to a decision mine.

Orom-Cross has several key characteristics that suggest it can be a standout graphite project; namely considerable size and scale, significant graphite near to surface that suggests low strip ratio for mining and a low cost operation, predominantly large flakes which may yield a high grade, highly sought after concentrate as its end-product, and a lower sovereign risk location as considered in relation to many other similar large graphite projects in Africa.

Blencowe Resources #BRES – First Stage Value-Add Completed at Orom-Cross

The Company is pleased to provide an update on all progress to date since its acquisition of the Orom-Cross Graphite Project in April, and its return to trading on LSE immediately thereafter.

Highlights

The Company’s Prospectus laid out its intention to fast-track value creation for the Project, by moving Orom-Cross up the development curve as quickly as possible through a combination of drilling and metallurgical studies.  The key requirements to fulfil this were identified as follows;

  • A substantial diamond drilling programme to deliver enough resource to support an initial mine life of over ten years.
  • A maiden JORC Resource for the asset, to provide both the Company and industry participants sufficient confidence with respect to the development of a modest part of Orom-Cross.
  • Completion of further metallurgical test work, using samples from this drilling programme to better understand end product from the area considered for initial mining.
  • Complete land acquisition and social responsibility programmes to ensure on-the-ground support.
  • Develop key relationships in-country to ensure ongoing support and activities moving forward.
  • Deliver a first commercial model outlining an initial mining scenario, once all drilling and metallurgical test work has been successfully completed.

Blencowe is pleased to report that a number of these objectives have already been met this year, with the balance expected to be completed by year end. This has been achieved despite the various challenges faced via Covid-19 restrictions in both Uganda and UK.

A 69-hole (1,950m) diamond drill programme was planned, executed and completed, with initial results looking positive.  These included the discovery of a new high grade lode of graphite, which was subsequently drilled within the original drilling budget and is expected to boost the overall JORC Resource estimate. The drilling programme also reconfirmed the Company’s belief that the majority of the Orom-Cross deposit contains larger flake size graphite, which commands a significant premium in terms of pricing per tonne.

Logging of core has been completed and samples are in transit to JORC-accredited labs in Tanzania ahead of the delivery of a maiden JORC Resource for Orom-Cross before the end of 2020.  Due to the vast size and scale of the asset this initial JORC is expected to be on just 1% of the overall deposit, however, it will represent a key step forward and is expected to provide sufficient resources to deliver the Project into first production with a mine life in excess of ten years.

In parallel to those samples sent to Tanzania, samples will also be sent to Canada for metallurgical testing by the experienced and market leading graphite specialist SGS, who have done similar work for many other graphite projects worldwide.  This work will not only reconfirm the data from Tanzania, but also identify what the exact end product (concentrate) at Orom-Cross will look like and the process flow to deliver that. Upon receipt of these findings, Blencowe will be able to look to enter into discussions with potential off-takers and industrial consumers to aid with the financing of the ultimate development.

The Company has continued to engage the local community, including making payments to those impacted, as set out within the terms of the mining license.  This support is considered vital to the long term viability of Orom-Cross and Blencowe is pleased to report that these funds have already been utilised for tractors and other equipment necessary to assist local communities in the area to grow their crops. In terms of disruption, both Orom-Cross and surrounding area benefit from limited existing settlement and as a result the requirement for relocations of households is expected to be minimal. However, the Company remains keen to support the regional community and will continue in both its dialogue and direct investment efforts to help boost the development of the region.

Further positive meetings and discussions with senior Government officials have continued, with an underlying tone of support and goodwill. Blencowe is grateful of their ongoing support, which is crucial in terms of long term viability of the Project and its subsequent impact on the local economy.

Significant new cash was raised in London to provide the means to deliver this work programme and an experienced management team is now in place and working hard to continue to deliver on all programmes ahead.

Blencowe is a firm believer that demand for high quality flake graphite will surge in the next decade.  This is to be driven by not only the demand in retardants, which require exclusively a larger flake size graphite product (as expected in Orom Cross), but also as the demand for lithium-ion (Li-ion) batteries exponentially increases, to store energy for electric vehicles and other renewable sources.  Flake graphite is a key component of the anode within the Li-ion batteries and technical experts suggest that this battery will remain the primary product in this market over the medium and longer terms.  Several larger graphite projects worldwide have either ceased or reduced production due to a wide variety of issues, whilst many of the existing deposits and proposed future developments are located in less stable regions across the globe. Accordingly, the Company believe that the graphite market may be in shorter supply in the future than the market is currently considering, whist the location of Orom-Cross in a stable African jurisdiction should make it more desirable to a potential off-takers looking for surety and continuity of supply.

Executive Chairman Cameron Pearce commented;

“This has been a very active and successful quarter since we brought in this excellent project, and recommenced trading on the LSE.  This has been achieved against the backdrop of the COVID-19 pandemic and I thank all those working on the Project who have continued to progress Orom-Cross in these truly unprecedented times.”

“The Board have no doubt that Orom-Cross is a world class graphite deposit, given its size and expected grades and flake sizes. We have a clear strategy to move the asset forward as rapidly as possible towards production. The first step to achieving this will be the publication of the maiden JORC Resource later this year, followed by the results of the metallurgical studies. The Company is well-funded to achieve these objectives following this year’s capital raise and I look forward to updating shareholders in due course.” 

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Blencowe Resources #BRES Appoints SGS Lakefield to complete Metallurgical Test Work for Orom-Cross Project

The Company is pleased to announce that further metallurgical test work will commence shortly on its Orom-Cross graphite project in Northern Uganda.  This work is critical to understanding the quality of the end-product that Orom-Cross can deliver as a high grade graphite concentrate, as well as what the process flow will look like to achieve this.

Blencowe has recently completed a 69 hole, 1950 meter diamond drilling programme, designed to deliver a maiden JORC Resource for Orom-Cross.  Both the drilling and metallurgical test work are integral parts of the development of this Project and both are required prior to commencement of a feasibility study later in the year.

Drillhole samples from the Project are currently in transit to SGS Mwanza (Tanzania) for sample preparation which will prepare samples for grade assays and metallurgical test work.

Following the closure of previous metallurgy partner Metzana, and after evaluation of several organisations, Blencowe is pleased to announce that it has appointed SGS Lakefield (Canada), to conduct further metallurgical assessment of the project. SGS Lakefield have extensive experience in graphite assessment with contribution to over 25 projects in recent years, and several of these have been in East Africa and in similar oxide environments to Orom-Cross.

SGS Lakefield have been commissioned by Blencowe to undertake a metallurgical test work program to confirm Total Graphite Content (TGC) of +95%, high recoveries, concentrate grade and maximising flake sizing. The aim of the additional test work is to confirm the liberation pathway for increased recoveries and higher grade within the concentrate.

Highlights;

The objectives of this Phase Two metallurgical test work are as follows:

  • Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (Thorium and Vanadium).
  • Confirm ~80% recovery is achievable for this concentrate.
  • Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.
  • Confirm the process flow diagram for plant design as part of the forthcoming Feasibility Study.
  • Deliver bulk concentrate to allow Blencowe to initiate discussions with potential off-take partners.

If Blencowe is able to deliver a concentrate with these properties it will have a graphite product of considerable value.  Expected timing to complete this exercise is by the end of 2020 but this remains dependant on business practises remaining normalised with all the challenges Covid-19 presents.

Executive Chairman Cameron Pearce commented;

“The first phase of metallurgical test work completed during the Orom-Cross due diligence exercise provided evidence that the graphite concentrate could achieve minimum standard 94% TGC.  This next phase of work is designed to take the product to the next level and is targeting a higher grade 95-97% TCG as well as increased recoveries. 

We are confident we can achieve these objectives and thus deliver a high quality product that will be higher up the price curve as well as in greater demand.

Thereafter we intend to use these results to assist with process flow and plant design, whilst at the same time we will have a better understanding of the end-product that we can ultimately sell into world markets.” 

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresorcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Blencowe Resources #BRES – JORC Resource Drilling Program Completed

The Company is pleased to advise it has now successfully completed its diamond drilling program on its Orom-Cross Graphite Project in Northern Uganda. The final data from the most recent drilling will be combined with existing results and studies to deliver a maiden JORC resource in Q3 2020.

Recent drilling since the last operation update of 2 July 2020 has focused on further infill and step out drilling at both the Western Anomaly and also the newly discovered High Grade Camp Lode. In total, 65 holes with a combined total meterage of 1,950m have been drilled. Geological logging of the holes and core sample delineation has been completed on this latest drilling and will shortly move the remaining samples to the assay labs in Tanzania.

The drill sites are currently being rehabilitated and the drilling teams departed from site at the weekend. Despite an overall increase in drilling metres following the discovery of a high grade zone, the drill program was successfully completed within budget and without incident. A local team will remain at site for security maintenance.

The drill program was designed to delineate approximately 8 to 10 million tonnes to a JORC (2012) Indicated standard, which would provide the initial resource for 10 years of mining. Initial results suggest the Company will achieve that objective and that there is a significant weighting of higher value jumbo, extra-large and large flake sizes within the identified resource. The area targeted on this initial drilling campaign represents less than 1% of the Project acreage and the Company is well positioned to expand reserves and ultimately production should demand dictate.

Cameron Pearce Executive Chairman’s commented:

“Despite the various challenges faced by Covid-19 restrictions our in-country partners ADT Drilling and Minrom have completed a highly successful drill program in good time.  In the process we discovered a new high grade lode which will add value to our overall project.  The next step is to move the remaining samples for assaying and ultimately to deliver a JORC Resource in the current quarter.

The Phase Two metallurgical test work for Orom-Cross is well underway as we continue to build our knowledge of our end product ahead of engaging in discussions with interested parties.

I look forward to updating the market in due course on both of these fronts.” 

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

 

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Blencowe Resources #BRES Nears Completion of Phase 1 Drilling Program at Orom-Cross Graphite Project

The Company is pleased to provide a further update to the comprehensive JORC Resource diamond drilling program that has commenced on its Orom-Cross Graphite Project in Northern Uganda (“Project”).

Highlights

· 59 hole drill program targeting western anomaly

· 57 holes completed, first batch of 20 holes to be assayed from next week

· Second drill rig has now been mobilised at the newly identified high grade zone

· Maiden JORC (2012) Indicated Resource anticipated early Q4 2020

Drilling Program Update

The Company has made good progress following the resumption of drilling at the Project after the nationwide lockdown during Q2 2020 as a result of the Covid-19 pandemic. Drilling has focused on the western anomaly, which includes a newly identified ‘high-grade’ zone, with 57 holes now completed and 2 remaining.

Of the 57 holes, 50 holes have already been logged and sampled, with the first batch of 20 holes due to leave site this week for assaying in the nearest JORC accredited independent laboratory in Mwanza (Tanzania). The second batch will be dispatched next week.

As part of the decision to further test the identified high-grade zone close to the camp site, a second drill rig has been mobilised to site and drill-out of this lode will commence this weekend. These extra holes are expected to fall within the Company’s existing 2020 drilling budget given the efficiency of operations to date.

The Company expects the full drill program to be completed by late July, with all remaining samples dispatched to the Mwanza lab at a similar time. Drill-hole sites will then be rehabilitated as part of the outlined work program.

To date all drilling has gone according to plan with visible graphite showing in all areas, including larger flakes as targeted by the Company.  The next phase of the program will focus on assaying and samples from this drilling campaign will be sent to technical experts to recommence metallurgical test work in Q4 2020.

The current drill program has been designed to delineate approximately 8 to 10 million tonnes to a JORC (2012) Indicated standard, which would provide the initial resource for 10 years of mining. The area targeted represents less than 1% of the Project.

Cameron Pearce Executive Chairman commented:

“We are pleased with the quality and speed of execution for the current drilling program at Orom-Cross, as well as all preliminary indications.  We are grateful to our in-country partners for their considerable efforts to effectively manage this campaign in challenging circumstances and we look forward to delivering a maiden JORC Resource for Orom-Cross early in Q4 2020.”

“Blencowe acquired this Project as we believe graphite demand is set to increase materially over the next decade and beyond due to a combination of rapidly increasing demand for lithium-ion batteries coupled with a supply chain that remains relatively stagnant, particularly for larger flake and higher value projects such as those expected from Orom-Cross.  We believe that Orom-Cross production will coincide neatly with this anticipated shortfall of graphite in world markets.”

For further information please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Blencowe Resources #BRES – Update on recently identified High-Grade Graphite Zone at Orom-Cross Project

Update on the recently identified High-Grade Graphite Zone at Orom-Cross Project

 

  • First diamond drill hole returns visible high-grade graphite
  • Further drilling now underway to delineate the lode
  • First hole now being prepared for assay

The Company is pleased to provide a further update to the comprehensive JORC Resource diamond drilling program that is underway on its Orom-Cross Graphite Project in Northern Uganda.

Background

Following the decision to test the recently identified High-Grade zone close to the existing camp site and close to where the proposed processing plant would be situated, a single diamond drill hole has been completed to a depth of 30m to test both the weathered zone and possible graphite mineralisation.

The hole has returned visible high grade graphite over 28m of 30m of intersection, with weathering extending to the base of the hole. Based on prior samples taken in this particular area the expectation is for grades of up to double the 6-8% average Orom-Cross grade. Subsequent logging by company geologists has also identified zones of large to jumbo flakes in the core.

The core has been sampled and is being prepared for dispatch to assay laboratories in Tanzania.

Following confirmatory identification of this potential High-Grade Zone in close proximity to the intended plant location the company has authorised the redirection of a drill rig to complete a 9-15 hole program to delineate the Lode, following completion of the current drill program.

Executive Chairman Cameron Pearce commented;

“We are very enthusiastic to note the potential of this new high-grade zone based on visual inspection. We look forward to receiving the assay results and in the meantime, we are going to escalate the drill programme in the vicinity to identify the extent of this zone. This additional high grade zone would add material value to the overall project and we look forward to reporting further on the drilling and assays in due course.

For further information please contact:

 

Blencowe Resources Plc

Sam Quinn (London Director)

 

 

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

sam@lionsheadconsultants.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

 

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

 

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Blencowe Resources #BRES – Half-year Report

The Company is pleased to announce its Interim Results for the six-month period to 31 March 2020.

For further information please contact:

Blencowe Resources Plc

Cameron Pearce /

Sam Quinn

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

sam@blencoweresourcesplc.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

 

Interim Management Report

Dear shareholder,

I am pleased to present the interim report and accounts for the six month period to 31 March 2020 for Blencowe Resources Plc.

As shareholders are aware, the past few months have seen the Company pass significant milestones with the reverse takeover of Consolidated African Resources (Uganda) Ltd, (“CARU”), the owner of the Orom Graphite Project in northern Uganda, fundraise of £2m and relisting on the LSE.  The Company has thereby met its initial objective in identifying and acquiring an early stage natural resources project with tremendous growth potential.

However, the Transaction completed on 28 April after the reporting date for these interim accounts, and therefore they do not show the financial effect of the Transaction.  There accounts, therefore show the position prior to the transaction.  For an overview of how the accounts would appear on completion of the Transaction, please refer to Part VIII “Pro Forma Financial Information Of The Enlarged Group” of the prospectus issued by the Company on 30 March 2020.

In the period covered by these financial statements, I and my co-directors, with the support of our new management team and professional advisers, were fully engaged in preparing for the Transaction.  The balance sheet at 31 March shows net liabilities of £177,000 as a result of the expenditure incurred in connection with the Transaction.  The issue of shares for cash and to acquire CARU restored the Company to a positive net asset position, and the Company is now well funded to meet the next stage of its development plans.

The Orom-Cross Graphite Project is a potential world class graphite project both by size and end-product quality, with circa 75% of the resource expected to comprise of the most desirable and high value jumbo, extra-large and large flake product.  The deposit, estimated to be in excess of 3 billion tonnes, presents as a large, shallow open-pitable mine, with anticipated low strip ratio and free dig operations, suggesting future OPEX and CAPEX within the lowest quartile when compared to other producers.  A 21-year Mining Licence was awarded in 2019, significantly de-risking any development.  Whilst the travel restrictions imposed as a result of COVID-19 have inhibited progress in recent weeks, this does not detract from the long-term economic attractiveness of the project.  The Company has now mobilised drill teams to site to recommence the test drilling program.

I would like to thank the team for their support in the launch of this exciting journey, and I thank shareholders for investing in the Company’s future.

Responsibility Statement of the Directors in respect of the Interim Report

The Directors are responsible for preparing the Interim Financial Statements in accordance with applicable law and regulations. In addition, the Directors have elected to prepare the Interim Financial Statements in accordance with International Financial Reporting Standards (“IFRSs”), as adopted by the European Union (“EU”).

The Interim Financial Statements are required to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these Interim Financial Statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· present information and make judgements that are reasonable, prudent and provides relevant, comparable and understandable information.

· provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particulars transactions, other events and conditions on the entity’s financial position and financial performance; and

· make an assessment of the Company’s ability to continue as a going concern.

The Directors are responsible for keeping proper accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time its financial position of the Company to enable them ensure that the financial statements comply with the requirements of the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and Interim Financial Statements.  Legislation governing the preparation and dissemination of Interim Financial Statements may differ from one jurisdiction to another.

We confirm that to the best of our knowledge:

· the Interim Financial Statements , prepared in accordance with International Financial Reporting Standards as adopted by the EU, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company for the period;

· the Director’s report includes a fair review of the development and performance of the business and the position of the company, together with a description of the principal risks and uncertainties that they face; and

· the annual report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the company’s performance, business model and strategy.

 

Statement of Comprehensive Income

for the six month period ended 31 March 2020

6 months ended

31 Mar 2020

6 months ended

31 Mar 2019

12 months ended

30 Sep 2019

(Restated)

(Unaudited)

(Unaudited)

(Audited)

Notes

GBP

GBP

GBP

Administrative fees and other expenses

5

(481,752)

(82,973)

(243,119)

Operating loss

(481,752)

(82,973)

(243,119)

Finance costs

Loss before tax

(481,752)

(82,973)

(243,119)

Income tax

Loss for the period and total comprehensive loss for the period

(481,752)

(82,973)

(243,119)

Basic and diluted loss per share (pence)

7

(1.52)

(0.38)

(0.93)

There was no other comprehensive income for the period ended on 31 March 2020.

Statement of Financial Position as at 31 March 2020

As at

31 Mar 2020

As at

31 Mar 2019

As at

30 Sept 2019

(Restated)

(Unaudited)

(Unaudited)

(Audited)

Notes

GBP

GBP

GBP

Current assets

Trade and other receivables

6

252,693

256,854

Cash and cash equivalents

88,249

206,794

141,992

Total current assets

340,942

206,794

398,846

Current liabilities

Creditors: Amounts falling due within one year

518,643

33,645

111,724

Total current liabilities

518,643

33,645

111,724

Net (liabilities) / assets

(177,701)

173,149

287,122

Equity

Share capital

450,000

400,000

450,000

Share premium

209,983

209,983

Warrants reserves

50,707

19,642

33,778

Retained earnings

(888,391)

(246,493)

(406,639)

Total equity

(177,701)

173,149

287,122

Statement of Changes in Equity for the six month period ended 31 March 2020

Share capital

Share premium

Warrant reserves

Retained earnings

Total equity

GBP

GBP

GBP

GBP

GBP

Balance as at 30 Sep 2018

400,000

5,506

(163,520)

241,986

Total comprehensive loss for 6 months

Loss for the period

(82,973)

(82,973)

Total comprehensive loss

(82,973)

(82,973)

Contributions from equity holders

Issue of warrants

14,136

14,136

Total contributions from equity holders

14,136

14,136

Balance as at 31 Mar 2019

400,000

19,642

(246,493)

173,149

Total comprehensive loss for 6 months

Loss for the period

(160,146)

(160,146)

Total comprehensive loss

(160,146)

(160,146)

Contributions from equity holders

New shares issued

50,000

350,000

400,000

Share issued costs

(140,017)

(140,017)

Issue of warrants

14,136

14,136

Total contributions from equity holders

50,000

209,983

14,136

274,119

Balance as at 30 Sep 2019

450,000

209,983

33,778

(406,639)

287,122

Total comprehensive loss for 6 months

Loss for the period

(481,752)

(481,752)

Total comprehensive loss

(481,752)

(481,752)

Contributions from equity holders

Issue of warrants

16,929

16,929

Total contributions from equity holders

16,929

16,929

Balance as at 31 Mar 2020

450,000

209,983

50,707

(888,391)

(177,701)

Statement of Cash Flows for the six month period ended 31 March 2020

As at

31 Mar 2020

As at

31 Mar 2019

As at

30 Sept 2019

(Restated)

(Unaudited)

(Unaudited)

(Audited)

Notes

GBP

GBP

GBP

Operating activities

Loss after tax

5

(481,752)

(82,973)

(243,119)

Share based payment

16,929

14,136

28,272

Changes in working capital

Decrease/(increase) in trade and other receivables

3,497

(256,853)

Increase/(decrease) in trade and other payables

407,583

(2,458)

75,620

Net cash flows from operating activities

(53,743)

  (71,295)

(396,080)

Financing activities

Shares issued

400,000

Shares issued (cost)

(140,017)

Net cash flows from financing activities

259,983

Increase in cash and short-term deposits

(53,743)

(71,295)

(136,097)

Cash and short-term deposits brought forward

141,992

278,089

278,089

Cash and cash equivalents at end of period

88,249

206,794

141,992

Notes to the Financial Statements for the six month period ended 31 March 2020

1.  General

Blencowe Resources Plc (the “Company”) is a public limited company incorporated and registered in England and Wales on 18 September 2017 with registered company number 10966847 and its registered office situated in England and Wales at 25 Bilton Road, Rugby, CV22 7AG.

The Company did not trade during the period under review.

2.  Accounting Policies

Basis of preparation

The interim financial statements of Blencowe Resources Plc are unaudited condensed financial statements  for the 6 month period ended 31 March 2020.

The accounting policies applied by the Company in these interim financial statements, are the same as those applied by the Company in its consolidated financial statements, and have been prepared on the basis of the accounting policies expected to apply for the financial year to 30 September 2019 which have been prepared in accordance with IFRS as adopted by EU for. The Company Financial Statements has been prepared using the measurement bases specified by IFRS each type of asset, liability, income and expense.

The Company Financial Statements  are presented in £, which is the Company’s functional currency. All amounts have been rounded to the nearest pound, unless otherwise stated.

Comparative figures

The comparative figures have been presented as the Company Financial Statements cover the 6 month period ended 31 March 2019 and the 12 month period ended 30 September 2019.

It was noted that in the 31 March 2019 period, warrant costs of £14,136 were not accrued for.  Therefore, the 31 March 2019 figures have been restated to show its correct allocation of costs and a corresponding reduction of total equity.  The basic and diluted loss per share for the period ended in 31 March 2019 has increased from 0.37p to 0.38p.

3.  Critical accounting estimates and judgments

In preparing the Company’s Interim Financial Statements, the Directors have to make judgments on how to apply the Company’s accounting policies and make estimates about the future. The Directors do not consider there to be any critical judgments that have been made in arriving at the amounts recognised in the Company Financial Statements.

4.  Significant accounting policies

The accounting policies adopted are consistent with those followed in the preparation of the annual financial statements of Blencowe Resources Plc for the year ended 30 September 2019.  A copy of these financial statements is available on the Company website at https://blencoweresourcesplc.com/

5.  Administrative fee and other expenses

6 months ended

 31 Mar 2020

6 months ended

31 Mar 2019

12 Months ended

30 Sep 2019

(Restated)

(Unaudited)

(Unaudited)

(Audited)

GBP

GBP

GBP

Directors’ remuneration

45,052

29,881

75,077

Professional fees

220,701

31,279

54,203

Listing fees

77,830

19,552

Audit fees

75,000

3,000

19,200

Share issue/warrant cost

16,930

14,136

28,272

Project Costs

10,530

2,919

12,211

Provision

663

11,172

Administration fees

9,000

8,159

Broker fees

2,500

5,000

Printing expenses

12,857

Travelling expenses

7,260

1,393

4.685

Miscellaneous fees

3,430

365

5,588

Total

481,752

82,973

243,119

The Company did not employ any staff during the period other than Directors. The Directors are the only members of key management and their remuneration related solely to short term employee benefits.

6.  Trade and other receivables

6 months ended

 31 Mar 2020

6 months ended

31 Mar 2019

12 Months ended

30 Sep 2019

(Restated)

(Unaudited)

(Unaudited)

(Audited)

GBP

GBP

GBP

Loan to CARU

257,184

223,431

Other receivables

7,344

37,495

Prepayments

7,100

264,528

268,026

Less: provision

(11,835)

(11,172)

Total

252,683

256,854

7.  Loss per share

The calculation of the basic and diluted loss per share is based on the following data:

6 months ended

 31 Mar 2020

6 months ended

31 Mar 2019

12 Months ended

30 Sep 2019

(Unaudited)

(Unaudited)

(Audited)

Earnings

GBP

GBP

GBP

Loss from continuing operations for the period attributable to the equity holders of the Company

(481,852)

(82,973)

(243,119)

Number of shares

Weighted average number of Ordinary Shares for the purpose of basic and diluted earnings per share

31,666,664

21,666,664

26,187,212

Basic and diluted loss per share (pence)

(1.52)

(0.38)

(0.93)

There are no potentially dilutive shares in issue.

8.  Related party transactions

The are no related party transactions during the period except for the Directors’ remuneration, which has been disclosed in note 5.

9.  Events after the reporting date

On 23 April 2020 the Company’s Annual General Meeting took place and shareholders approved the acquisition from Consolidated Africa Limited (“CRA”) and New Energy Minerals Africa Pty Ltd (“New Energy”) of 100% of the share capital of Consolidated African Resources (Uganda) Ltd (“CARU”) on issue of 25,000,000 Ordinary Shares to CRA  and the issue of 8,333,333 Ordinary Shares to New Energy.  CARU is a Ugandan registered company and is the owner of the Orom Graphite Project in northern Uganda.

On 28 April, the Company completed the transaction to acquire CARU and raised £2m of gross proceeds at 6p per share through a placing of £1.5m and subscription by an African based strategic investor for £500,000.  On the same day, the Ordinary Shares were readmitted to the Standard List of the London Stock Exchange.

 

Following issue of the above shares to placees and subscribers, the Company has a total of 98,333,326 Ordinary Shares in issue.

Blencowe Resources #BRES – New High-Grade Graphite Zone Identified at Orom-Cross Project

The Company is pleased to provide a further update to its ongoing comprehensive JORC Resource diamond drilling program at the Orom-Cross Graphite Project in Northern Uganda.

Highlights

Following a review and remodelling of geophysical survey program data acquired earlier this year, as well as historical pitting and drill results, a highly prospective High-Grade Zone has now been outlined approximately 250m from the current exploration camp site.

The identification of this new High-Grade Zone, which is also in close proximity to the intended plant location, has the potential to lower operating costs as well as deliver additional economic benefits for the overall project.

Following the lifting of travel restrictions as a result of COVID-19, the Company is mobilising drill teams to site this week to recommence the previously outlined broader drilling program. It has now authorised the redirection of a drill rig to test the zone with a single drill hole. This hole is subsequently expected to be completed within the next 10 days and will be reported on in due course along with additional drilling results.

Executive Chairman Cameron Pearce commented;

“Blencowe is looking at all ways possible to continuously add value to the Orom-Cross Project and the identification of this High-Grade Zone near to infrastructure is further indication of this.  We will complete initial confirmatory drilling on this first hole shortly and if the results are positive we will consider how best to include this zone into the overall JORC Resource program that is underway.”

 

For further information please contact:

Blencowe Resources Plc

Cameron Pearce / Sam Quinn

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

sam@lionsheadconsultants.com

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

Tel: +44 (0)20 3463 5000

jonathan.evans@brandonhillcapital.com

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of larger flakes identified from previous work performed. A 21-year Mining Licence was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.

Orom-Cross presents as a large, shallow open pitable deposit, with an estimated resource in excess of 3 billion tonnes of graphite. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Blencowe Resources #BRES – Recommencement of Phase Two Metallurgical Test Work for Orom-Cross Graphite Project

Blencowe Resources Plc, is pleased to announce it has now recommenced key metallurgical test work on its Orom-Cross graphite project in Northern Uganda. The test work, which began in South Africa at the start of 2020, had been placed on hold for six weeks from late March due to a nationwide lockdown introduced by the government to help combat Covid-19. Blencowe is pleased to report these restrictions have now been partially lifted, allowing for labs to recommence the processing of existing samples from Orom-Cross. This work is being undertaken by technical experts Metanza.

The objective of the ongoing metallurgical test work is to further understand the quality of the end- product that Orom-Cross can deliver, as well as what the process flow will look like. Blencowe believe Orom-Cross has the potential to deliver a high grade graphite concentrate, which would prove desirable to potential offtakers and the broader market.

The Company recently announced that it’s ongoing 59 hole and 1800 metre diamond drilling programme in Uganda was also due to recommence in the near term, following Covid-19 related shutdown. The drill programme (of which circa 25% has already been completed) is designed to deliver a maiden JORC Resource for Orom-Cross during the middle of 2020. Both the drilling and the metallurgical test work are fully funded and form integral parts of the development of this project. The Company looks forward to both sets of results ahead of the commencement of a feasibility study later in the year.

Phase 2 Metallurgical Testwork Program

In the second half of 2019 Metzana Minerals in South Africa was commissioned to undertake a first phase confirmatory metallurgical test work program to confirm Total Graphite Content (TGC) of at least 94%, and to consider recoveries, impurities and retention of flake size within the concentrate. This was successfully achieved along with confirmation of low impurities.

In February 2020 a resultant second phase test work campaign commenced to build on the positive findings in phase one and to confirm the liberation pathway for increased recoveries and an even higher grade within the concentrate.

The first two (of six) stages for this work was completed prior to Coronavirus lockdown in South Africa, and work is now resuming on the remaining stages as that country re-opens.

The key objectives of the Phase Two metallurgical test work are as follows:

  • Confirm a 95-97% TGC pure concentrate is possible with low impurities (particularly thorium and vanadium).
  • Confirm ~80% recovery is achievable for this concentrate.
  • Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.
  • Confirm the process flow diagram for plant design as part of the forthcoming Feasibility Study.
    Deliver bulk concentrate to allow Blencowe to initiate discussions with potential off-takepartners.

If Blencowe is able to deliver a concentrate with these properties it will have a graphite product of considerable value. Early results are encouraging with both recovery and grades at higher levels than the first stage testwork program.

Upon completion Blencowe will be able to initiate discussions with various potential offtake parties as regards sale of product, which is a critical part of the overall process to bring Orom-Cross into production.

Likely timing to complete this exercise is approximately three months but this remains dependant on business practises returning to normal in South Africa to allow for work there to continue unhindered.

Cameron Pearce Executive Chairman commented; “The first phase of metallurgical test work completed during the Orom-Cross due diligence exercise provided evidence that the graphite concentrate could achieve a 94% TGC, which was a highly encouraging result for a first pass, being an acceptable level for sale of product. This next phase of work is designed to take the product to the next level by targeting a higher grade 95-97% TCG as well as increased recoveries. If successful it will significantly increase the desirability and value of the Orom- Cross product. Understanding both the end product and the process flow to deliver this, is a significant step forward in terms of value creation.
 
We are confident we can achieve our stated objectives and thus deliver a quality product that will be higher up the price curve as well as in greater demand. I look forward to providing further updates in due course.”

For further information please contact:

Blencowe Resources Plc

Sam Quinn (UK Director)

Brandon Hill Capital Limited

Jonathan Evans (Corporate Finance)

www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com

www.brandonhillcapital.com
Tel: +44 (0)20 3463 5000 jonathan.evans@brandonhillcapital.com

About Orom-Cross Project

Orom-Cross is a substantial graphite project in northern Uganda. Blencowe Resources acquired 100% of this asset in April 2020 following extensive due diligence and a capital raise of £2 million in the UK. These funds will be utilised to advance Orom-Cross through to a maiden JORC Resource, followed by a feasibility study and ultimately to a decision mine.

Orom-Cross has several key characteristics that suggest it can be a standout graphite project; namely considerable size and scale, significant graphite near to surface that suggests low strip ratio for mining and a low cost operation, predominantly large flakes which may yield a high grade, highly sought after concentrate as its end-product, and a lower sovereign risk location as considered in relation to many other similar large graphite projects in Africa.

Andalas Energy & Power – Resignation of Directors

Andalas Energy and Power Plc (ADL), the AIM listed investment company, announces that Cameron Pearce and Jeremy King are stepping down as directors of the Company with immediate effect, so that they may pursue their other business interests.

Andalas CEO, David Whitby, said “On behalf of the Board, I would like to express our thanks to Cam and Jeremy for the important contribution they made to the Company during their tenure.  They have been key components in the advancement of our strategy and we wish them the best in their future endeavours.”

For further information, please contact:

David Whitby

Andalas Energy and Power Plc

Tel: +62 21 2783 2316

Simon Clements

James Thomas

Sanlam Securities UK Limited

(Nomad and Joint Broker)

Tel: +44 (0) 20 7628 2200

Lucy Williams

Charles Goodfellow

Peterhouse Corporate Finance

Limited (Joint Broker)

Tel: +44 (0) 20 7469 0930

Colin Rowbury

Cornhill Capital (Joint Broker)

Tel: +44 (0) 20 77109610

Frank Buhagiar

St Brides Partners Limited

Tel: +44 (0) 20 7236 1177

 

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