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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
|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
|
Twitter https://twitter.com/BlencoweRes
#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
|
Investor Relations
Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
Tavira Financial
Jonathan Evans |
Tel: +44 (0)20 3192 1733
|
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 Update & China Visit
· 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
|
Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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
|
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
|
Tel: +44 (0) 1624 681 250
|
Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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 – 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
|
Tel: +44 (0) 1624 681 250 info@blencoweresourcesplc.com
|
Investor Enquiries Sasha Sethi |
Tel: +44 (0) 7891 677 441
|
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 |
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 |
12 months ended 30 Sep 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