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#BRES Blencowe Resources PLC – Corporate Presentation

Blencowe Resources is pleased to announce the release of an updated presentation following the completion of the DFC grant.

The presentation can be viewed here and can be found on the Company’s website at https://blencoweresourcesplc.com/presentation/

For further information please contact:

 

 

  Blencowe Resources Plc

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

#BRES Blencowe Resources PLC – DFC Grant Completed

Orom-Cross is the first pre-production graphite project to achieve support from the Development Finance Corporation (“DFC”), a USA government backed finance provider

DFC to co-fund the Definitive Feasibility Study (“DFS”) and also be lead partner for the project financing of the Orom-Cross into production

Highlights:

  • Ground-breaking technical assistance agreement signed with tier one financial institution to provide Blencowe with significant funding for DFS programme.
  • US$5 million to be input by the DFC as a grant, with a 20% upfront contribution (US$1 million) to be paid immediately.
  • Further DFC payments will be made upon as-agreed feasibility study milestones being achieved.
  • DFC is the United States of America’s (“US”) leading development finance institution that partners with the private sector to provide finance solutions for project development in markets deemed as critical to US interests.
  • DFC is geared to provide funding assistance for Orom-Cross as part of the US Government’s strategic drive to secure a reliable supply chain of critical minerals and metals, within its wider US$1 trillion Biden-renewables strategy.
  • As part of the US$5 million Technical Assistance Grant (“TAG”) the DFC has a right of first refusal on commercial terms to arrange project financing for the Orom-Cross project, which may deliver Blencowe with a potential full funded solution to bring Orom-Cross into production with support from the tier 1 major financial institution.
  • The DFC partnership opens up the potential for Blencowe to consider a larger scale project with potentially far greater returns within the DFS. This will have material ramifications on overall Orom-Cross project value ahead.

 

Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has signed a US$5 million agreement with the DFC in order to provide substantial funding for the Orom Cross DFS programme, via a Technical Assistance Grant.  The DFC is a proxy for the US Government which funds the organisation and ultimately sets its vision, parameters and funding distribution.

Cameron Pearce, Executive Chairman commented;

“This funding relationship with the DFC is a unique and game-changing event for Blencowe. To the best of our knowledge there has been no other graphite project worldwide that has received a similar type grant to date from the DFC.  We appreciate and we value this support and we will do everything we can to build their trust within this relationship, to ensure we deliver a high quality project together.

 

We believe that that having DFC as our strategic project partner substantially de-risks Orom-Cross and provides us with the means to deliver a world class project from here.  Blencowe presented an excellent US$482 million NPV for Orom-Cross within the Pre-Feasibility Study last year but we are now optimistic that we can deliver an even greater value NPV within the Definitive Feasibility Study as we can expand the project horizons. 

 

With the support of the DFC, we can address one of the major challenges and risks to any mining being the clear pathway to fund the project into production. We now have the opportunity to build the Orom-Cross project into a world class project with the comfort of a world class strategic partner.

 

Graphite demand is rising fast and will continue to do so.  It is one of the under-rated but key components of the lithium-ion battery and it is irreplaceable in this regard.  As such any future anticipated surge in demand for these batteries, not just for electric vehicles but for energy storage in all other renewable capacities, will continue to accelerate demand for graphite.  We now have the means to deliver one of the leading graphite projects in the world and a highly incentivised tier one strategic partner with whom we will work with to do that.”

 

DFC Technical Assistance Grant (TAG)

This is an innovative funding mechanism for the DFC to become involved at an early stage with key projects that they consider to be within their direct scope and strategy.  As Orom-Cross contains an estimated 2-3 billion tonnes of graphite and is one of the largest, high quality deposits worldwide it has considerable long term appeal to the DFC.  Graphite remains high on the US Government critical metals and minerals list, hence this relationship with Blencowe opens a potential supply chain for high value end-product over a very long life of mine.

DFC has been working closely with Blencowe through this TAG process and both the Company and the Orom-Cross project have been subjected to all necessary due diligence in order to progress DFC interest into this monetised initial funding solution.  Both parties see considerable long term value in their association with one another and Blencowe is confident this relationship will assist to provide a larger project funding solution ahead.  One of the key terms within the TAG Agreement is for DFC to be mandated to provide financing for the full Orom-Cross project on commercial terms.

Prospective new graphite producers need to think outside the box to find innovative funding solutions in order to deliver their projects and the DFC relationship provides this for Orom-Cross.  Not only does the US$5 million grant cover a significant portion of the DFS costs, which materially reduces the dilutionary impact to Blencowe of funding the full DFS itself, but it also provides a highly motivated full mine implementation funding partner ahead.  Furthermore, the credibility associated with partnering one of the leading tier one financial institutions worldwide will open a variety of other relationships ahead as key players in the graphite market (including end user OEMs) can see a new high quality graphite project emerging that now has a more certain pathway to production.

Blencowe will immediately request the upfront payment of the initial 20% of the TAG (US$1 million), which together with the Company’s existing funds provides the means to continue DFS work underway and deliver the next as-agreed milestone payment with DFC.  Once this next milestone is achieved further DFC funds are unlocked and so on, until the full grant is utilised and ultimately the DFS is completed.

One substantial advantage that now comes into play with the DFC relationship is that Blencowe is able to consider a larger-scale production strategy than it could do under the base-case scenario that the Company was considering whilst funding solo.  The implications of this are enormous and the Company will provide a further update on this once the revised strategy is finalised.  The expectation would be for a larger project from day one with a downstream processing facility built in-country to produce an uncoated battery-ready 99.95% SPG product.  These factors above will ultimately deliver a considerably higher Net Present Value than the US$482 million NPV achieved within the 2022 Pre-Feasibility Study.

About International Development Finance Corporation

The DFC is the primary US Government finance institution set up to provide financially sound funding solutions for private-sector initiatives pertaining to critical challenges facing the world, in this case the drive towards increased sustainability across the planet.  It is an agency of the United States federal government and represents US interests.

DFC’s lending capacity is used to provide loans, guarantees, equity investments and political-risk insurance for private-sector led development projects, feasibility studies and technical assistance.  DFC invests across several sectors with stated goals of empowerment, innovation, investment into Africa, green energy and climate change.

Orom-Cross is directly linked with several of these goals.  This project may ultimately become one of the largest graphite producing operations in the world over a very long mine life, delivering an end-product in a sustainable manner which is a non-replaceable input component to lithium-ion batteries.  Demand for graphite is accelerating at a rate where it is doubling every few years, and is expected to continue growing exponentially into the future.  Graphite is therefore high on the US Government critical metals and minerals list and assisting to open up long term supply chain of graphite is a key strategy.

Orom-Cross will also deliver a ‘green’ graphite product through a variety of production initiatives, including the use of hydro-electric power for all mining and processing energy requirements.  Orom-Cross aims to become one of the leading sustainable mining projects worldwide and this is a very important component of the DFC charter and critical within a rapidly changing landscape where every participant along the EV supply chain will be audited on their sustainability credentials by OEMs.

Orom-Cross’s potential ability to aid in the further development of the Ugandan economy, empowering its population and driving investment and future development has also proved attractive to the DFC.

 

For further information please contact:

 

 

  Blencowe Resources Plc

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

 

 

 

Background

Orom-Cross Graphite Project

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger coarse flakes within the deposit.

A 21-year Mining Licence for the project was issued by the Ugandan Government in 2019 following extensive historical work on the deposit.  Blencowe completed a successful Pre-Feasibility Study on the Project in July 2022 and is now within the Definitive Feasibility Study phase as it drives towards first production.

Orom-Cross presents as a large, shallow open-pitable deposit, with an initial JORC Indicated & Inferred Mineral Resource of 24.5Mt @ 6.0% TGC (Total Graphite Content). This Resource has been defined from only ~2% of the total tenement area which presents considerable upside potential ahead.  Development of the resource is expected to benefit from a low strip ratio and free dig operations together with abundant inexpensive hydro-electric power off the national grid, thereby ensuring low operating costs.  With all major infrastructure available at or near to site the capital costs will also be relatively low in comparison to most graphite peers.

#BRES Blencowe Resources PLC – Bulk Sampling Completed

Completion of 100t Bulk Sample underlines high quality graphite product from Orom-Cross

 

Highlights:

·    Blencowe has now successfully completed critical pre-qualification metallurgical test work with 100t bulk sample works concluded in China.

·    Commercial scale results continue to confirm that a high-grade, low impurity concentrate (95-97% TGC) can be delivered from Orom-Cross graphite project in Uganda.

·    Increased coarse flake percentage of final mix, together with higher recoveries, will increment the overall weighted average selling price of the Orom-Cross basket of end products.

·    Blencowe now has a considerably larger volume of concentrate product to send to potential end users for further pre-qualification testing.

·    Positive feedback received from end users on Blencowe’s high-quality 95-97% TGC product with significant interest from established Chinese industry groups in progressing offtake arrangements.

 

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to announce that additional metallurgical test work on its Orom-Cross graphite project in Uganda has now been completed by leading graphite technical specialist laboratory, Jilin New Technology (“Jilin”) based at Yanji in Northern China, following our recent update on 14 August 2023.

 

This metallurgical test work is critical to understanding the commercial scale process plant components, the quality of the end-product that Orom-Cross can deliver as a high-grade graphite concentrate as well as the flake sizing yield, and the operability of a process plant at Orom-Cross.  The 100t bulk sample also provides significantly greater quantum of end product for end user testing which is critical for the Definitive Feasibility Study.

 

Executive Chairman Cameron Pearce commented:

 

“We are very pleased with these results from the 100 tonne bulk sample program.  We utilized the services of a very experienced graphite plant operator at Jilin for the pilot testing as we believed this party’s extensive knowledge over decades in the industry would deliver superior net concentrate results, and I delighted to say they have delivered us a great outcome.”

 

Mr Pearce added:We now have proof we can deliver a very high quality graphite concentrate from Orom-Cross on a commercial scale, which is a key DFS milestone.  In parallel we are testing the upgrade of this concentrate to uncoated battery-ready 99.95% SPG (spheronised, purified graphite) and expandables as the next important step to significantly value-add our end products. 

 

Finally, we also now have larger quantities of concentrate as bulk samples to deliver to potential buyers and engage with strategic groups. These groups can now proceed to test the concentrate and determine their level of interest for binding offtake agreements which will be crucial for our project financing. We believe these results will be attractive to a range of graphite consumers and that Orom-Cross can help deliver the shortfall of graphite expected in the market in the foreseeable future.”

 

Background to the Test Work

 

Blencowe commissioned Jilin New Technology in partnership with Wuhan University to undertake metallurgical test work on a 100t bulk sample which covered material from both the Northern Syncline and Camp Lode areas within Orom-Cross. The pilot plant program was designed to deliver the following objectives:

 

1.    Confirm the commercial scale viability of processing the Orom-Cross ores.

2.    Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is possible with low impurities (in particular thorium and vanadium).

3.    Confirm the laboratory testing models.

4.    Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.

5.    Confirm the process flow diagram for the pilot plant design as part of the Definitive Feasibility Study.

6.    Deliver significant quantum of bulk concentrate to allow Blencowe to initiate discussions with potential off-take partners.

Blencowe is pleased to announce that the pilot plant process has successfully delivered on all of the above objectives.

 

The optimisation of the process (on the basis of the previous laboratory testing) has been very successful with the pilot plant methodology further improved and able to deliver a shorter overall processing of the ore, whilst improving the metrics of the concentrate delivered.

 

A shorter processing cycle has the benefits of lower capital expenditure and lower operating costs, both of which will enhance the overall Orom-Cross project financials.

 

The streamlined processing design has also realised increased recoveries of the more valuable larger +50mesh flake from 6.5% to 9.5% yield (within overall basket of end products), whilst increasing overall large flake yield by approximately 2% and increasing overall concentrate recoveries to over 94%.  Again, this will add further value to the project financials.

 

The additional metallurgical test work to date shows a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross, which will now be used directly for reference in the actual concentrator engineering design for the Definitive Feasibility Study.

 

#BRES Blencowe Resources PLC – Bulk Sampling Update & China Visit

Highlights:

·    Blencowe has successfully completed a critical component of the Definitive Feasibility Study (“DFS”), with the successful scaled commercialisation of the flowsheet within the bulk sample processing at Chinese pilot plant graphite production facility.

·    Results continue to highlight a high-grade, low impurity concentrate can be delivered in bulk from Orom-Cross.

·    Several meetings held with leading Chinese graphite offtake firms seeking both large flake and fines concentrates.

·    Ugandan mining officials visited China with Blencowe and were shown the process facility in support of the project.

·    Blencowe now approached for downstream processing opportunities.

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to provide an update on the 100 tonne bulk sample processing program currently underway. The work is being completed by a leading graphite technical specialist firm, Jilin New Technology, based in Yanji Province in northern China.  This experienced graphite facility has been conducting similar test work on several other leading East African graphite projects over the past few years.

The Company is expecting the bulk sample test program to be completed by the end of August.

Senior Company personnel travelled to China recently to review the progress on the bulk sample processing and broaden relationships in this key market.  Accompanying the COO was the Company’s Ugandan Country Manager and a representative of the Ugandan Directorate of Geological Survey and Mines (DGSM), with the express purpose of evaluating the progress of the processing and to demonstrate the full process for the Ugandan Government.

Following a refinement of the Pre-Feasibility Study processing methodology by Wuhan University specialists, Blencowe wished to confirm directly with the pilot plant operators the expected improvements in both overall recovery and concentrate grades and secure early samples for delivery to potential offtake partners, following a marked increase in interest for the projects’ concentrate within China. The 100 tonne pilot plant process is currently nearing completion and to date it is confirming the commercial processing viability of the Orom-Cross ores. The Company also visited operating graphite plants and graphite processing equipment suppliers.

Following the distribution of concentrate samples to potential end users from the IMO test work and Wuhan University 150kg test work, several large downstream offtake processors requested meetings to discuss timing and availability of the high-grade, low impurity concentrates from the Orom-Cross project. The offtake meetings involved firms seeking substantial quantities of both larger flake concentrates and fines feedstock for the SPG processors. Several downstream processing firms have expressed interest in opportunities to explore in-country downstream processing of the Orom-Cross concentrates and Blencowe will consider this within the DFS that is underway.

Blencowe was pleased to be able to escort a representative of the Ugandan Directorate of Geological Survey and Mines to view the final processing of the bulk sample. Blencowe invited the DGSM representative to view the process in order to continue to develop a better understanding of the processing technology involved, to foster a deeper overall understanding of the project within Uganda, and to continue to work in partnership with the Government in order to develop the project.

 

For further information please contact:

 

 Blencowe Resources Plc

 Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Alan Green covers Shuka Minerals #SKA & Blencowe Resources #BRES on this week’s Stockbox Research Talks

Alan Green covers Shuka Minerals #SKA & Blencowe Resources #BRES on this week’s Stockbox Research Talks

Blencowe Resources #BRES – Warrants Update

Further to the announcement on 18 April 2023, the Board of the Company has indicated its wish to exercise 3,150,000 warrants from a total of 6,000,000 warrants allocated that are due to expire on 18 July 2023. Cameron Pearce and Sam Quinn exercised 500,000 and 250,000 respectively as announced on 23 November 2020, therefore, a balance of 2,150,000 warrants of 4p will expire today.

The Board continue to be in a close period relating to the advanced discussions with the DFC regarding funding the DFS, therefore, may not deal in the securities of the Company.

The Board has committed unconditionally to proceed with exercising the warrants at the earliest opportunity possible at such time it is permitted to exercise the warrants.  The Company shall receive proceeds of £126,000 following the exercise.

 

Director

Warrants to be exercised

Price

Proceeds

Cameron Pearce

1,000,000

4p

£40,000

Sam Quinn

750,000

4p

£30,000

Mike Ralston

1,000,000

4p

£40,000

Alex Passmore

400,000

4p

£16,000

 

The Board will notify their holdings in due course following the exercise of warrants.

 For further information, please visit https://blencoweresourcesplc.com or the following:

 

Blencowe Resources

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0) 1624 681 250

info@blencoweresourcesplc.com

 

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

 

First Equity Limited

Jason Robertson

Tel: +44 (0)203 192 1733

jasonrobertson@firstequitylimited.com

 

 

Blencowe Resources #BRES – CEO Video Interview

Blencowe Resources (BRES:LON), is pleased to share a recent interview with CEO Mike Ralston on the Proactive Investors platform.

Within this video interview, Blencowe CEO Mike Ralston provides further detail relating to the recently announced positive metallurgical test work results from Orom-Cross by the leading Chinese graphite technical specialist laboratory (based at Wuhan University) where open cycle floatation tests produced recoveries between 92-94% (previously 90%) and concentrate grades consistently ranging  between 95-98% for all graphite mesh sizes.

In the interview, Mr. Ralston also updates on progress with securing a $5 million grant from the US International Development Finance Corporation (“DFC”).

 

Click on the link below to watch: https://www.youtube.com/watch?v=tgdVG1lvlZM&ab_channel=ProactiveInvestors

Interested investors can also sign up to the Blencowe Newsletter at the following link:

https://blencoweresourcesplc.us13.list-manage.com/subscribe?u=ba87c801d05702dc7b8d75a3b&id=bd90aec04f

For further information, please contact:

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

 

+44 (0)1624 681 250

info@blencoweresourcesplc.com

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 7100 5100 jonathan.evans@tavira.group

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

 

 

Twitter: https://twitter.com/BlencoweRes

 

LinkedIn: https://www.linkedin.com/company/blencowe-resources/

Blencowe Resources #BRES – Further metallurgical test work confirms high quality of end products from Orom-Cross

Highlights:

·    Blencowe successfully completes critical metallurgical test work on a substantially increased scale of 150kgs by leading Chinese graphite metallurgical test laboratory at Wuhan University.

·    Previous metallurgical test work by both SGS in Canada and IMO in Australia based on smaller sample sizes.

·    Results continue to highlight a high grade, low impurity concentrate.

·    Refinements to the processing methodology delivers;

 Increased percentage of higher value large and jumbo flakes within the 97% concentrate (36% increases to 38%).

 Increased recoveries (90% increases to 93%).

·    Blencowe now has considerably more volume of end product concentrate to send to potential offtake and strategic parties ahead.

Blencowe Resources Plc (“Blencowe” or the “Company”), is pleased to announce that additional metallurgical test work on its Orom-Cross graphite project in Northern Uganda has been completed by the leading Chinese graphite technical specialist laboratory, based at Wuhan University.  This is recognised as one of the most experienced graphite facilities in the world and has been conducting similar tests to improve graphite processing methodology for over 30 years.

This test work is also 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 on a commercial scale.  It also provides significantly greater quantum of end product for end user testing, which is critical within the Definitive Feasibility Study (“DFS”).

Metallurgical Test Work Objectives

Blencowe appointed Wuhan University in partnership with Jilin New Technology to undertake metallurgical test work on material gathered from its drilling campaigns, which covered both the Northern Syncline and Camp Lode areas within Orom-Cross.

The program was designed to deliver the following objectives:

1.    Confirm a 95-97% TGC (Total Graphite Content) pure concentrate is achievable on the larger sample size with low impurities (in particular thorium and vanadium) as previously indicated.

2.    Confirm +90% recovery is achievable for this concentrate.

3.    Confirm the liberation process in order to maintain a majority of Jumbo/XL/Large flakes within the concentrate.

4.    Confirm the process flow diagram for the pilot plant design as part of the DFS.

5.    Deliver bulk concentrate to allow Blencowe to initiate discussions with potential off-take partners.

Metallurgical Test Work Results

Blencowe is pleased to announce that all 5 objectives have been met or exceeded in this round of test work. Open cycle floatation test produced recoveries between 92-94% (previously 90%) and concentrate grades consistently range between 95-98% for all graphite mesh sizes.

The additional metallurgical test work was commissioned to test the required pilot plant configuration and all metallurgical test-work undertaken to date shows a robust flowsheet capable of repeatable metallurgy for a wide range of feed samples from Orom-Cross.

The proposed flowsheet was employed in a continuous pilot operation to determine the metallurgical response under typical operating conditions. The final concentrate graded 96.0% C(t) at 93.2% total carbon recovery which exceeded the company’s expectations and places the end product recovered at the higher end of the spectrum in comparison to its peers.

The pilot plant circuit optimisation undertaken to date has lifted the large flake recovery by 3% and also lifted the fines concentrate grade by some 2% TGC, whilst maintaining the grade in other flake sizes. This is important in terms of further downstream processing these fines to deliver a 99.9% SPG (spheronised, purified graphite) battery-ready product.  The resultant test work was focused towards achieving the five key objectives as outlined above, as well as being geared towards optimising the flake size fractions and the finer mesh concentrate grade.

100t Bulk Update

These highly encouraging results will enable the Company to now proceed with further improvements and optimisation to the plant ahead of processing the previously announced 100t bulk sample, which has already been extracted and exported from Uganda to China.  Blencowe will continue to refine the commercial plant design throughout the DFS to optimise the pilot process and the end product it will deliver.

Executive Chairman Cameron Pearce commented:

“We are delighted that to see that our graphite product continues to deliver strong metallurgical results which is now endorsed by the leading graphite processing team in China. These results indicate that our concentrate is a highly marketable end product and will translate to more interested strategic and offtake parties being able to buy our product.

We will now progress with the much larger 100t bulk sample for our DFS, which will underpin our project value. I cannot emphasise enough that success within graphite projects is largely based on metallurgy and we are consistently getting results that end users of the product will find highly attractive when it comes to mining Orom-Cross and selling the range of products from that operation.”

 

 

 

 

 

 

 

For further information please contact:

 

 Blencowe Resources Plc

 Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0)1624 681 250

info@blencoweresourcesplc.com

 

Investor Relations

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Financial

Jonathan Evans

Tel: +44 (0)20 3192 1733

jonathan.evans@tavira.group

 

First Equity Limited

Jason Robertson

Tel: +44(0)20 7330 1833

jasonrobertson@firstequitylimited.com

 

Twitter https://twitter.com/BlencoweRes

LinkedIn https://www.linkedin.com/company/72382491/admin/

Blencowe Resources #BRES – Half-year Report

The Company is pleased to announce its Interim Results for the six-month period to 31 March 2023.

Electronic copies of the report will be available at the Company’s website www.blencoweresourcesplc.com

For further information please contact:

 

Blencowe Resources

Sam Quinn

 

www.blencoweresourcesplc.com

Tel: +44 (0) 1624 681 250

info@blencoweresourcesplc.com

 

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

 

Tavira Securities Limited

Jonathan Evans

Tel: +44 (0)203 192 1733

jonathan.evans@tavirasecurities.com

 

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

 

Interim Management Report

The period to 31 March 2023 (and subsequent events to 30 April 2023) have seen the Company continue to develop its Orom-Cross graphite project.

A Definitive Feasibility Study (“DFS”) commenced and is underway on a number of fronts; this is expected to take around 12 months to complete but the timing is dependent on pre-qualification test work being completed as a means to ultimately deliver binding offtake contracts for the full quantum of graphite concentrate being considered for sale under the phase one operational model.  Experienced Australian engineering firm CPC Engineering have agreed to manage and sign off on the DFS, and their experience and involvement will assist greatly in achieving a high quality study and result.

DFS work will concentrate on three key areas.  Firstly, work in-country to complete all work necessary to build and operate the mine, including all remaining licenses and permits. The associated infrastructure required to drive the operation will be scrutinised and plans put in place to ensure that all necessary infrastructure will be ready and in place for mining at Orom-Cross.  Local studies include management and personnel, mining, equipment, logistics and other key areas.  The DFS will take these studies to a far greater extent than the PFS in 2022.

Secondly, pre-qualification testing is taking place in the United States and China to advance the status of Orom-Cross graphite to potential buyers.  A bulk sample of 100 tonnes was mined from Orom-Cross in January and (via a special export permit) was approved for transport to China by sea, where it will be put through an existing graphite pilot testing facility.  This will save Blencowe substantial time and money by not having to build its own pilot facility on-site to get pre-qualified.  The resultant tonnes of 96% concentrate will be then processed to a series of 99.9% products, both expendable’s (large flakes) and SPG (spheronised, purified graphite) (smaller flakes).  Assuming successful these samples will be given to end user OEMs to conduct their own testing in their own facilities, to ensure Orom-Cross end product meets their standards and expectations.  Once this process is completed then Orom-Cross becomes ‘qualified’ and offtake contract discussions may be entered into.

A 150kg sample was sent to China by air as a preliminary raw material product for the same pilot facility to run tests on how to achieve the best results on the larger sample to follow, and the Company expects feedback on this shortly.  This full qualification process is what sets graphite apart from most other metals and it also creates barriers to entry for new participants in the industry.  Blencowe is confident that it has the right process/procedures in place to achieve the results it requires to pass this key hurdle.  Without binding offtake agreements, it will be difficult to deliver a decision to mine and/or project funding, so this is a critical path item within the DFS.  In the past this process has taken other graphite companies several years, Blencowe is hoping that the refinement of this process via its advisors will ensure we ultimately complete this pre-qualification much faster.

In parallel Blencowe is conducting further metallurgical test work in USA to provide evidence (bench-scale testing) that the 96% concentrate it will deliver at Orom-Cross will be suitable for upgrading to the 99.9% end products sought after by the market, and how this us best achieved.  These results are expected soon and will be important in ascertaining the end value within the project portfolio.

Thirdly, Blencowe is working through a number of different potential funding options to secure the right partnerships for funding both the DFS and the project implementation.  There are different alternatives at both topco and project level and it is important that the right relationships are built that can deliver this project ahead, both now (DFS stage) and in building the full project.  Blencowe announced in April its successful passing through a key screening hurdle/test with the Development Finance Corporation (DFC) which is a tier one US Govt-owned financial institution which provides funding solutions for the private sector in areas the US Govt deems are critical.  Graphite is considered critical and hence the interaction.  This is seen as a valuable relationship for Orom-Cross and the Company is hoping to sign off on a substantial technical assistance grant with the DFC in the near term that will provide up to 50% of the DFS costs.  Thereafter this relationship has the potential to offer further funding solutions for the full project finance required.  The credibility that association with an institution of this stature brings to both our Company and our project cannot be easily measured; this would be a big result for Blencowe.

These and other DFS activities are the focus and will remain so for the Company ahead.  Further capital will be introduced into the Company as and when required, with the continued support of our major shareholders, and once Blencowe delivers the DFC technical assistance grant it is believed that many other funding opportunities will emerge at all levels.

Elsewhere, the Company walked away from the previously announced nickel exploration earn-in deal with SIPA Resources as it was considered more advantageous to concentrate on delivering the Orom-Cross graphite project into production ahead.

Mike Ralston

Chief Executive Officer

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 United Kingdom (“UK”).

The Interim Financial Statements are required to give a true and fair view of the state of affairs of the Group and of the profit or loss of the Group 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 Group’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 Group’s transactions and disclose with reasonable accuracy at any time its financial position of the Group 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 Group 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 UK, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group for the period;

·      the Director’s report includes a fair review of the development and performance of the business and the position of the group, 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 group’s performance, business model and strategy.

Consolidated Statement of Comprehensive Income for the six month period ended 31 March 2023

6 months ended

31 Mar 2023

6 months ended

31 Mar 2022

(Unaudited)

(Unaudited)

(Audited)

Notes

GBP

GBP

GBP

Exploration costs

(16,642)

(2,744)

(4,853)

Impairment -Akelikongo project

(404,533)

Administrative fees and other expenses

5

(446,424)

(331,617)

(681,488)

Adjustments to Liability to surface liability

51,316

Operating loss

(463,066)

(334,361)

(1,039,558)

Finance costs

(23,010)

(21,975)

(45,916)

Loss before tax

(486,076)

(356,336)

(1,085,474)

Income tax

Loss after tax

(486,076)

(356,336)

(1,085,474)

Other comprehensive income

Exchange differences on translation of foreign operation

7,807

(2,061)

(4,205)

Other comprehensive income, net of tax

7,807

(2,061)

(4,205)

Total comprehensive loss

(478,269)

(358,397)

(1,089,679)

Basic and diluted loss per share (pence)

9

(0.28)

(0.27)

(0.68)

   There was no other comprehensive income for the period ended on 31 March 2023.

Consolidated Statement of Financial Position as at 31 March 2023

As at

31 Mar 2023

As at

31 Mar 2022

As at

30 Sept 2022

(Unaudited)

(Unaudited)

(Audited)

Notes

GBP

GBP

GBP

Non-Current Assets

7,065,820

5,815,114

6,615,253

Current assets

Trade and other receivables

6

135,901

248,413

85,847

Cash and cash equivalents

130,740

968,693

346,994

Total current assets

266,641

1,217,106

432,841

Total assets

7,332,461

7,032,220

7,048,094

Current liabilities

Creditors: Amounts falling due within one year

(429,843)

(282,217)

(326,375)

Total current liabilities

(429,843)

(282,217)

(326,375)

Non-current liabilities

Surface liabilities

(785,520)

(924,359)

(825,852)

Total liabilities

(1,215,363)

(1,206,576)

(1,152,227)

Net assets

6,117,098

5,825,644

5,897,867

Equity

Share capital

1,931,316

1,101,316

1,181,316

Share premium

7,428,329

6,841,596

7,480,829

Warrants reserves

402,148

317,876

402,148

Translation reserve

7,264

1,601

(543)

Retained earnings

(3,651,959)

(2,436,745)

(3,165,883)

Total equity

6,117,098

5,825,644

5,897,867

Consolidated Statement of Changes in Equity for the six month period ended 31 March 2023

Share capital

Share premium

Share option reserves

Retained earnings

Translation reserve

Total equity

GBP

GBP

GBP

GBP

GBP

GBP

Balance as at 30 Sep 2021

901,316

5,132,081

317,876

(2,080,409)

3,662

4,274,526

Total comprehensive loss for 6 months

Loss for the period

(356,336)

(356,336)

Total comprehensive loss

(356,336)

(356,336)

Contributions from equity holders

New shares issued

200,000

1,800,000

2,000,000

Share issue costs

(90,485)

(90,485)

Exchange differences on translation

   (2,061)

(2,061)

Total contributions from equity holders

200,000

1,709,515

(2,061)

1,907,454

Balance as at 31 Mar 2022

1,101,316

6,841,596

317,876

(2,436,745)

1,601

5,825,644

Total comprehensive loss for 6 months

Loss for the period

(729,138)

(729,138)

Total comprehensive loss

(729,138)

(729,138)

Contributions from equity holders

New shares issued

80,000

720,000

800,000

Share issue costs

(80,767)

(80,767)

Warrants reserve

84,272

84,272

Exchange differences on translation of foreign operations

(2,144)

(2,144)

Total contributions from equity holders

80,000

639,233

84,272

(729,138)

(2,144)

801,361

Balance as at 30 Sep 2022

1,181,316

7,480,829

402,148

(3,165,883)

(543)

5,897,867

Consolidated Statement of Changes in Equity for the six month period ended 31 March 2023

Share capital

Share premium

Share option reserves

Retained earnings

Translation reserve

Total equity

GBP

GBP

GBP

GBP

GBP

GBP

Balance as at 30 Sep 2022

1,181,316

7,480,829

402,148

(3,165,883)

(543)

5,897,867

Total comprehensive loss for 6 months

Loss for the period

(486,076)

(486,076)

Total comprehensive loss

(486,076)

(486,076)

Contributions from equity holders

New shares issued

750,000

750,000

Share issued costs

(52,500)

(52,500)

Exchange differences on translation of foreign operations

7,807

7,807

Total contributions from equity holders

750,000

(52,500)

7,807

705,307

Balance as at 31 Mar 2023

1,931,316

7,428,329

402,148

(3,651,959)

7,264

6,117,098

Consolidated Statement of Cash Flows for the six month period ended 31 March 2023

As at

31 Mar 2023

As at

31 Mar 2022

As at

30 Sept 2022

(Unaudited)

(Unaudited)

(Audited)

Notes

GBP

GBP

GBP

Operating activities

Loss after tax

(486,076)

(356,336)

(1,085,474)

Depreciation

104

Finance costs

23,010

21,974

45,916

Adjustment to Surface Liability

(51,316)

Share issue/warrant cost

84,272

Impairment – Akelikongo costs

404,533

Unrealised currency translation

261,566

(61,217)

(208,371)

Changes in working capital

Decrease/(increase) in trade and other receivables

(50,054)

(195,833)

(33,267)

Increase/(decrease) in trade and other payables

(39,568)

38,945

76,483

Net cash flows from operating activities

(291,018)

(552,467)

(767,224)

Cash flows from financing activities

Purchase of fixed assets

(748)

Investment in exploration assets

(621,988)

(481,643)

(1,423,236)

Net cash flows from investment activities

(622,736)

(481,643)

(1,423,236)

Financing activities

Shares issued

750,000

2,000,000

Shares issued (cost)

(52,500)

(90,486)

2,444,166

Net cash flows from financing activities

697,500

1,909,514

2,444,166

Increase in cash and short-term deposits

(216,254)

875,404

253,706

Cash and short-term deposits brought forward

346,994

93,288

93,288

Cash and cash equivalents at end of period

130,740

968,692

346,994

Notes to the Financial Statements for the six month period ended 31 March 2023

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 167-169 Great Portland Street, Fifth Floor, London, England W1W 5PF.

The Group did not earn any trading income during the period under review but incurred expenditure in developing its principal assets.

The Consolidated Interim Financial Statements of the Company for the six month period ended 31 March 2023 comprise the financial statements of the Company and its subsidiaries (together referred to as the “Group”).

2.   Accounting Policies

Basis of preparation

The Interim Financial Statements of the Group are unaudited condensed financial statements for the six month period ended 31 March 2023.

The accounting policies applied by the Group in these Interim Financial Statements, are the same as those applied by the Group in its consolidated financial statements and have been prepared on the basis of the accounting policies applied for the financial year to 30 September 2022 which have been prepared in accordance with IFRS as adopted by UK for. The Group Financial Statements have been prepared using the measurement bases specified by IFRS each type of asset, liability, income and expense.

The Group Financial Statements are presented in £, which is the Group’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 Group Financial Statements cover the 6 month period ended 31 March 2022 and the 12 month period ended 30 September 2022.

3.   Critical accounting estimates and judgments

In preparing the Group’s Interim Financial Statements, the Directors have to make judgments on how to apply the Group’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 Group 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 2022.  A copy of these financial statements is available on the Group website at https://blencoweresourcesplc.com/

5.   Administrative fee and other expenses

6 months ended

 31 Mar 2023

6 months ended

31 Mar 2022

12 Months ended

30 Sep 2022

(Unaudited)

(Unaudited)

(Audited)

GBP

GBP

GBP

Directors’ remuneration

70,023

70,046

173,413

Professional fees

121,692

130,655

274,333

Salaries

75,000

60,000

142,500

Listing fees

18,218

19,783

26,910

Audit fees

21,644

4,375

29,000

Share issue/warrant cost

84,272

Administration fees

23,500

23,500

47,000

Broker fees

20,500

29,542

38,048

Travelling expenses

7,959

34,167

Miscellaneous fees

87,888

(6,284)

(168,155)

Total

446,424

331,617

681,488

The Group had two employees who are key management personnel and three Directors. The Directors and the key management personnel’s remuneration related solely to short term employee benefits.

6.   Trade and other receivables

6 months ended

 31 Mar 2023

6 months ended

31 Mar 2022

12 Months ended

30 Sep 2022

(Unaudited)

(Unaudited)

(Audited)

GBP

GBP

GBP

Other receivables

21,526

37,997

24,765

Prepayments

114,375

210,416

61,082

Total

135,901

248,413

85,847

7.   Creditors: Amounts falling due within one year

6 months ended

 31 Mar 2023

6 months ended

31 Mar 2022

12 Months ended

30 Sep 2022

(Unaudited)

(Unaudited)

(Audited)

GBP

GBP

GBP

Payables

118,980

268,067

140,018

Land Owners Liability

143,036

154,403

Accruals and provision

167,827

14,150

31,954

Total

429,843

282,217

326,375

8.   Creditors: Amounts falling after one year

BRUL, the Company’s subsidiary entered into an agreement for surface rights over the land in the mineral area of the licence. The land owners granted BRUL a 49 year lease over an area. The liability to the land owners is to be paid in 8 instalments on at defined dates with the final payment due in 2035.

6 months ended

 31 Mar 2023

6 months ended

31 Mar 2022

12 Months ended

30 Sep 2022

(Unaudited)

(Unaudited)

(Audited)

GBP

GBP

GBP

Total payable at the beginning of the period

978,255

887,560

887,560

Change in estimate

(51,316)

Interest charged during the period

23,010

21,975

45,916

Exchange loss on valuation

(72,709)

14,824

96,095

Total payable as at period end

928,556

924,359

978,255

Analysis between current and non-current liability

Payable within 12 months

143,036

154,403

Payable after 12 months

785,520

924,359

823,852

928,556

924,359

978,255

 

The value of the lease is measured at the present value of the contractual payments due to the lessor

over the lease term, with the discount rate of 5%.

9.   Loss per share

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

6 months ended

 31 Mar 2023

6 months ended

31 Mar 2022

12 Months ended

30 Sep 2022

(Unaudited)

(Unaudited)

(Audited)

Earnings

GBP

GBP

GBP

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

(478,269)

(353,336)

(1,085,474)

Number of shares

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

168,803,923

133,655,997

160,790,224

Basic and diluted loss per share (pence)

(0.28)

(0.27)

(0.68)

There are no potentially dilutive shares in issue.

10. Related party transactions

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

Sam Quinn is a director and shareholder of the Company and a Director of Lionshead Consultants Limited.  During the period, Lionshead Consultants Limited charged fees for consultancy fees of £18,000 (31 March 2022: £12,000 and 30 Sep 2022: £24,000).

11. Events after the reporting date

On 27 April 2023, the Company announced that it has managed to secure a strategic funding partner for the Orom-cross graphite project. The Development Finance Corporation engaged to fund 50% of the definitive feasibility study costs by way of a technical assistant grant. The DFC is the primary US Government finance institution set up to provide financially sound solutions for private sector initiatives pertaining to critical challenges facing the world.

On 18 May 2023 Blencowe Resources Plc announced that it had raised £635,000 at 5 pence per share through the issue of 12,700,000 new ordinary shares of 0.5p placing shares. The Company will issue investors in the Placing with 1 warrant per 2 Placing Shares (Investor Warrants”) which are exercisable at 8p for a period of 3 years from Admission of the Placing Shares.

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END

Blencowe Resources #BRES – RAB Capital increases holding from 10% to 11.34%

TR-1: Standard form for notification of major holdings – RAB Capital increases holding from 10% to 11.34% (22,300,000 shares)

1. Issuer Details

ISIN

GB00BFCMVS34

Issuer Name

BLENCOWE RESOURCES PLC

UK or Non-UK Issuer

UK

2. Reason for Notification

An acquisition or disposal of voting rights

3. Details of person subject to the notification obligation

Name

RAB Capital Holdings Limited

City of registered office (if applicable)

Brentwood

Country of registered office (if applicable)

United Kingdom

Name

City of registered office

Country of registered office

RAB Special Situations (Master) Fund Limited

George Town

Cayman Islands

Eagles Trust Limited

St Clements

Jersey

William Philip Richards

St Brelade

Jersey

RAB Capital Jersey Limited

St Helier

Jersey

4. Details of the shareholder

Name

City of registered office

Country of registered office

Pershing Securities Limited

London

United Kingdom

5. Date on which the threshold was crossed or reached

23-May-2023

6. Date on which Issuer notified

23-May-2023

7. Total positions of person(s) subject to the notification obligation

% of voting rights attached to shares (total of 8.A)

% of voting rights through financial instruments (total of 8.B 1 + 8.B 2)

Total of both in % (8.A + 8.B)

Total number of voting rights held in issuer

Resulting situation on the date on which threshold was crossed or reached

11.340000

0.000000

11.340000

22300000

Position of previous notification (if applicable)

10.000000

0.000000

10.000000

8. Notified details of the resulting situation on the date on which the threshold was crossed or reached

8A. Voting rights attached to shares

Class/Type of shares ISIN code(if possible)

Number of direct voting rights (DTR5.1)

Number of indirect voting rights (DTR5.2.1)

% of direct voting rights (DTR5.1)

% of indirect voting rights (DTR5.2.1)

GB00BFCMVS34

22300000

11.340000

Sub Total 8.A

22300000

11.340000%

8B1. Financial Instruments according to (DTR5.3.1R.(1) (a))

Type of financial instrument

Expiration date

Exercise/conversion period

Number of voting rights that may be acquired if the instrument is exercised/converted

% of voting rights

Sub Total 8.B1

8B2. Financial Instruments with similar economic effect according to (DTR5.3.1R.(1) (b))

Type of financial instrument

Expiration date

Exercise/conversion period

Physical or cash settlement

Number of voting rights

% of voting rights

Sub Total 8.B2

9. Information in relation to the person subject to the notification obligation

2. Full chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held starting with the ultimate controlling natural person or legal entities (please add additional rows as necessary)

Ultimate controlling person

Name of controlled undertaking

% of voting rights if it equals or is higher than the notifiable threshold

% of voting rights through financial instruments if it equals or is higher than the notifiable threshold

Total of both if it equals or is higher than the notifiable threshold

William Philip Richards

RAB Capital Jersey Limited

3.180000

3.180000%

William Philip Richards

William Philip Richards

4.700000

4.700000%

William Philip Richards

RAB Special Situations (Master) Fund Limited

William Philip Richards

Eagles Trust Limited

10. In case of proxy voting

Name of the proxy holder

 

The number and % of voting rights held

 

The date until which the voting rights will be held

 

11. Additional Information

 

12. Date of Completion

23/05/2023

13. Place Of Completion

London

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