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#BRES Blencowe Resources PLC – Results of Retail Offer
The Board of Blencowe Resources plc (the “Company”) announces that the Retail Offer launched on 6 November 2024 has now closed and has raised £117,875.60 through the issuance of 2,946,890 Retail Offer Shares at a price of 4 pence each.
Application will be made for the admission of 2,946,890 Retail Offer Shares to trading on the official list and the main market of the London Stock Exchange at 8.00 am on 12 November 2024. These new Ordinary Shares will rank pari passu with the Existing Ordinary Shares.
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following Admission of the Retail Offer Shares, the Company’s enlarged issued ordinary share capital will comprise 254,365,360 Ordinary Shares. The Company does not hold any Ordinary Shares in Treasury. Therefore, following Admission, the above figure may be used by shareholders in the Company as the denominator for the calculations to determine if they are required to notify their interest in, or a change to their interest in the Company, under the FCA’s Disclosure Guidance and Transparency Rules.
Unless otherwise defined, all capitalised terms used but not defined in this announcement shall have the meaning given to them in the announcement of the Fundraising made by the Company on 6 November 2024.
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
|
#BRES Blencowe Resources PLC – Half-year Report
The Company is pleased to announce its Interim Results for the six-month period to 31 March 2024.
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
|
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
|
Interim Management Report
This report covers the period 30 September 2023 to 31 March 2024, and subsequent events to 30 April 2024.
Work has been progressing on many fronts, on four continents, as the Orom-Cross Definitive Feasibility Study “(DFS”) gathers momentum.
In September the long-awaited Technical Assistance Grant Agreement (“TAG”) was signed with the US Government’s private sector investment arm, the Development Finance Corporation (“DFC”). This is a US$5 million grant awarded to Blencowe to assist with DFS costs and it is with pleasure I note that Blencowe is the first pre-production graphite company to receive such a grant from the US Government. Aside from the obvious advantages of having approximately 40% of our overall DFS costs being funded for free the credibility of both our Company and our Orom-Cross project are both significantly raised by having a partner of this calibre. Blencowe wishes to state once again our appreciation to DFC for this grant and all efforts will be made to deliver a first class DFS as a result.
To date US$3 million of this grant funding has been received as tranches are delivered on DFS milestones being achieved. It is our expectation that the final US$2 million will be received over the next six months for further work and ultimately completion of DFS. In addition, DFC is mandated to play a role as lead partner in a funding solution for Orom-Cross implementation ahead, and management are working closely with DFC to ensure that this will happen as substantial funding solutions remain the largest challenge for any new graphite project, so to have DFC involved adds significant weight and prestige, and a potential funding party with US$5 million skin in the game.
During this period several key milestones have been met with regards to actual DFS work. In 2H 2023 a 100-tonne bulk sample was mined and delivered to a technical facility in northern China which is a leading expert on graphite processing, and this ore was then beneficiated into 96% LOI concentrate. This in turn provides offtakers with the knowledge that commercial scale processing of Orom-Cross ore can deliver same high quality results as all lab-scale testing has shown to date, and secondly to provide a substantial quantum of 96% concentrate for Blencowe to send to various parties as samples, for testing and review. Following the success of this action, and the request of several tier one potential offtake partners, Blencowe has more recently mined a further 600-tonne bulk sample and sent it to the same facility, for the same reasons. This latest sample will also be beneficiated beyond 96% concentrate to a 99.95% uncoated SPG (spheronised, purified graphite) which is very near to what is used in the lithium-ion battery as graphite content.
Ultimately Blencowe is seeking offtake contracts and this commercial scale test work is designed to provide the samples and the results to qualify Orom-Cross product for these contracts, which themselves form an integral part of the DFS.
Other work continues within Uganda on infrastructure, community relations, environmental updates and all other key aspects of the DFS, and Blencowe remains working towards end-2024 as the delivery date for the DFS – subject to all necessary funding received to deliver as such.
Specialist technical work has also been underway in this period in the USA, considering the beneficiation of Orom-Cross concentrates to various high end products, up to 99.99% which is military grade. To date all work has been successful and provided evidence Orom-Cross has one of the most pure concentrates and upgraded products and this will bode well in future offtake discussions.
Despite all of this progress the Company is facing macro-challenges and the UK market remains flat, which has a direct impact on both the share price and market value. Blencowe will continue to market its achievements and remains positive on the medium and longer term outlook for graphite. We will continue to build our project and add value as this will ultimately be significant as demand continues to rise, while supply of graphite (particularly high quality) remains static.
We thank our shareholders and other stakeholders for their continued support and we look forward to continuing to kick goals ahead to deliver the DFS and success for the Company.
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 interim 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 2024
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 months ended 30 Sep 2023 |
||
(Unaudited) |
(Unaudited) |
(Audited) |
||
Notes |
GBP |
GBP |
GBP |
|
|
|
|
||
Exploration costs |
(23,669) |
(16,642) |
(53,347) |
|
Administrative fees and other expenses |
5 |
(682,486) |
(446,424) |
(1,298,872) |
Operating loss |
|
(706,155) |
(463,066) |
(1,352,219) |
|
|
|
||
Finance costs |
(19,685) |
(23,010) |
(45,748) |
|
Loss before tax |
|
(725,840) |
(486,076) |
(1,397,967) |
|
|
|
||
Income tax |
– |
– |
– |
|
|
|
|
||
Loss after tax |
|
(725,840) |
(486,076) |
(1,397,967) |
|
|
|
|
|
Other comprehensive income |
|
|
|
|
Exchange differences on translation of foreign operation |
|
64,153 |
7,807 |
31,282 |
Other comprehensive income, net of tax |
|
64,153 |
7,807 |
31,282 |
|
|
|
|
|
Total comprehensive loss |
|
(661,687) |
(478,269) |
(1,366,685) |
|
|
|
|
|
Basic and diluted loss per share (pence) |
10 |
(0.31) |
(0.28) |
(0.70) |
There was no other comprehensive income for the period ended on 31 March 2024.
The accompanying notes on form an integral part of the Interim Financial Statements.
Consolidated Statement of Financial Position as at 31 March 2024
|
As at 31 Mar 2024 |
As at 31 Mar 2023 |
As at 30 Sept 2023 |
|
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
Notes |
GBP |
GBP |
GBP |
|
|
|
|
|
|
Non-Current Assets |
6 |
7,061,967 |
7,065,820 |
7,604,564 |
|
|
|
|
|
Current assets |
||||
Trade and other receivables |
7 |
113,470 |
135,901 |
31,863 |
Cash and cash equivalents |
444,991 |
130,740 |
129,853 |
|
Total current assets |
|
558,461 |
266,641 |
161,716 |
Total assets |
7,620,428 |
7,332,461 |
7,766,280 |
|
Current liabilities |
||||
Creditors: Amounts falling due within one year |
8 |
(1,238,944) |
(414,843) |
(1,076,169) |
Total current liabilities |
|
(1,238,944) |
(414,843) |
(1,076,169) |
Non-current liabilities |
||||
Surface liabilities |
9 |
(783,549) |
(785,520) |
(818,915) |
Total liabilities |
(2,022,493) |
(1,200,363) |
(1,895,084) |
|
Net assets |
|
5,597,935 |
6,132,098 |
5,871,196 |
Equity |
||||
Share capital |
12 |
1,377,801 |
1,275,066 |
1,338,566 |
Share premium |
12 |
8,986,590 |
8,099,579 |
8,637,399 |
Warrants reserves |
428,342 |
402,148 |
428,342 |
|
Translation reserve |
94,892 |
7,264 |
30,739 |
|
Retained earnings |
(5,289,690) |
(3,651,959) |
(4,563,850) |
|
Total equity |
|
5,597,935 |
6,132,098 |
5,871,196 |
The accompanying form an integral part of the Interim Financial Statements.
|
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 |
93,750 |
656,250 |
– |
– |
– |
750,000 |
Share issue costs |
– |
(37,500) |
– |
– |
– |
(37,500) |
Exchange differences on translation |
– |
– |
– |
– |
7,807 |
7,807 |
Total contributions from equity holders |
93,750 |
618,750 |
– |
– |
7,807 |
720,307 |
Balance as at 31 Mar 2023 |
1,275,066 |
8,099,579 |
402,148 |
(3,651,959) |
7,264 |
6,132,098 |
|
|
|
|
|
|
|
Total comprehensive loss for 6 months |
|
|
|
|
|
|
Loss for the period |
– |
– |
– |
(911,891) |
– |
(911,891) |
Total comprehensive loss |
– |
– |
– |
(911,891) |
– |
(911,891) |
Contributions from equity holders |
|
|
|
|
|
|
New shares issued |
63,500 |
571,500 |
– |
– |
– |
635,000 |
Share issue costs |
– |
(33,680) |
– |
– |
– |
(33,680) |
Warrants reserve |
– |
– |
– |
– |
– |
– |
Exchange differences on translation of foreign operations |
– |
– |
26,194 |
– |
23,475 |
49,669 |
Total contributions from equity holders |
63,500 |
537,820 |
26,194 |
– |
23,475 |
650,989 |
|
|
|
|
|
|
|
Balance as at 30 Sep 2023 |
1,338,566 |
8,637,399 |
428,342 |
(4,563,850) |
30,739 |
5,871,196 |
Consolidated Statement of Changes in Equity for the six month period ended 31 March 2024
Total comprehensive loss for 6 months |
||||||
Loss for the period |
– |
– |
– |
(725,840) |
– |
(725,840) |
Total comprehensive loss |
– |
– |
– |
(725,840) |
– |
(725,840) |
Contributions from equity holders |
|
|
|
|
|
|
New shares issued |
39,235 |
353,115 |
– |
– |
– |
392,350 |
Share issued costs |
– |
(3,924) |
– |
– |
– |
(3,924) |
Exchange differences on translation of foreign operations |
– |
– |
– |
– |
64,153 |
64,153 |
Total contributions from equity holders |
39,235 |
349,191 |
– |
– |
64,153 |
452,579 |
Balance as at 31 Mar 2024 |
1,377,801 |
8,986,590 |
428,342 |
(5,289,690) |
94,892 |
5,597,935 |
The accompanying notes on form an integral part of the Interim Financial Statements.
Consolidated Statement of Cash Flows for the six month period ended 31 March 2024
As at 31 Mar 2024 |
As at 31 Mar 2023 |
As at 30 Sept 2023 |
||
(Unaudited) |
(Unaudited) |
(Audited) |
||
Notes |
GBP |
GBP |
GBP |
|
Operating activities |
|
|
|
|
Loss after tax |
(725,839) |
(486,076) |
(1,397,967) |
|
Depreciation |
– |
104 |
– |
|
Finance costs |
19,685 |
23,010 |
45,748 |
|
Adjustment to Surface Liability |
– |
– |
– |
|
Share issue/warrant cost |
– |
– |
26,194 |
|
Unrealised currency translation |
126,864 |
261,566 |
182,264 |
|
Changes in working capital |
||||
Decrease/(increase) in trade and other receivables |
7 |
(81,607) |
(50,054) |
53,984 |
Increase/(decrease) in trade and other payables |
8 |
162,775 |
(39,568) |
272,664 |
Net cash flows from operating activities |
|
(498,122) |
(291,018) |
(817,113) |
Investment activities |
||||
Purchase of fixed assets |
– |
(748) |
– |
|
Investment in exploration assets |
(1,175,345) |
(621,988) |
(713,848) |
|
Net cash flows from investment activities |
(1,175,345) |
(622,736) |
(713,848) |
|
Financing activities |
|
|||
DFC Government grant |
6 |
1,600,178 |
– |
– |
Shares issued (net of issue cost) |
388,427 |
697,500 |
1,313,820 |
|
Net cash flows from financing activities |
1,988,605 |
697,500 |
1,313,820 |
|
Increase in cash and short-term deposits |
315,138 |
(216,254) |
(217,141) |
|
Cash and short-term deposits brought forward |
129,853 |
346,994 |
346,994 |
|
Cash and cash equivalents at end of period |
|
444,991 |
130,740 |
129,853 |
The accompanying notes form an integral part of the Interim Financial Statements.
Notes to the Financial Statements for the six month period ended 31 March 2024
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 2024 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 2024.
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 2023 which have been prepared in accordance with IFRS as adopted by UK. 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 GBP, which is the Group’s functional currency. All amounts have been rounded to the nearest pound, unless otherwise stated.
Government grants
This is the first reporting period the Group is recognising government grants. Government grants are recognized once the entity has complied with conditions attaching to them and they have been received. Governments grants are accounted for using the capital approach under which a grant is recognized outside the profit and loss. Government grants related to assets, are presented in the statement of financial position by deducting the grant in arriving at the carrying amount of the asset. The grant is recognized in profit or loss over the life of a depreciable asset as a reduced depreciation expense.
Comparative figures
The comparative figures have been presented as the Group Financial Statements cover the 6 month period ended 31 March 2023 and the 12 month period ended 30 September 2023. During 2024, the Group discovered that share premium had been erroneously classified as share capital and administration expenses captured as share issue costs for interim accounts as at 31 March 2023. Refer to Note 12.
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 2023. 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 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
GBP |
GBP |
GBP |
Directors’ remuneration |
69,857 |
70,023 |
140,051 |
Professional fees |
80,001 |
121,692 |
226,471 |
Salaries |
75,000 |
75,000 |
150,000 |
Listing fees |
20,933 |
18,218 |
41,123 |
Audit fees |
33,498 |
21,644 |
35,000 |
Share issue/warrant cost |
– |
– |
26,194 |
Administration fees |
23,500 |
23,500 |
47,000 |
Sponsorship |
5,690 |
– |
– |
Broker fees |
18,434 |
20,500 |
41,000 |
Travelling expenses |
11,034 |
7,959 |
16,852 |
Ugandan taxes |
342,751 |
– |
392,425 |
Miscellaneous fees |
4,445 |
87,888 |
72,625 |
Royalties |
1,244 |
– |
– |
Foreign currency (gain)/loss |
(3,901) |
– |
110,131 |
Total |
682,486 |
446,424 |
1,298,872 |
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. Non-Current assets
For the period ended 31 March 2024 intangible assets represents capitalised costs associated with the Group’s exploration, evaluation and development of mineral resources net of any Government grants received.
|
6 months ended 31 Mar 2024 (Unaudited) GBP |
6 months ended 31 Mar 2023 (Unaudited) GBP |
12 months ended 30 Sept 2023 (Audited) GBP |
Exploration assets |
8,662,145 |
7,065,176 |
7,604,564 |
Property, Plant and Equipment |
– |
644 |
– |
Grant from US Government (Refer below) |
(1,600,178) |
– |
– |
Total |
7,061,967 |
7,065,820 |
7,604,564 |
The company signed a US$5 million agreement with the U.S. International Development Finance Corporation (“DFC”) in order to provide substantial funding for the Orom Cross Definitive Feasibility Study programme, via a Technical Assistance Grant (“TAG”). The DFC is a proxy for the US Government which funds the organisation and ultimately sets its vision, parameters and funding distribution. DFC payments will be made as agreed feasibility study milestones are achieved. 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 full funded solution to bring Orom-Cross into production with support from a major financial institution. The agreement is subject to various events of default.
7. Trade and other receivables
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
GBP |
GBP |
GBP |
Other receivables |
35,166 |
21,526 |
9,421 |
Prepayments |
78,304 |
114,375 |
22,442 |
Total |
113,470 |
135,901 |
31,863 |
8. Creditors: Amounts falling due within one year
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
GBP |
GBP |
GBP |
Payables |
707,912 |
103,980 |
644,585 |
Surface liabilities (Note 9) |
– |
143,036 |
– |
Accruals and provision |
194,352 |
167,827 |
39,159 |
Ugandan taxes |
336,680 |
– |
392,425 |
Total |
1,238,944 |
414,843 |
1,076,169 |
9. Surface liabilities
Blencowe Resources Uganda Limited, 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 Blencowe Resources Uganda Limited a 49 year lease over an area. The liability to the land owners is to be paid in 8 instalments at defined dates with the final payment due in 2035.
|
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
GBP |
GBP |
GBP |
Total payable at the beginning of the period |
818,915 |
978,255 |
978,255 |
Utilisation |
– |
– |
(148,468) |
Interest charged during the period |
19,685 |
23,010 |
45,748 |
Exchange loss on valuation |
(55,051) |
(72,709) |
(56,620) |
Total payable as at period end |
783,549 |
928,556 |
818,915 |
|
|
|
|
Analysis between current and non-current liability |
|
|
|
Payable within 12 months |
– |
143,036 |
– |
Payable after 12 months |
783,549 |
785,520 |
818,915 |
|
783,549 |
928,556 |
818,915 |
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%.
10. Loss per share
The calculation of the basic and diluted loss per share is based on the following data:
6 months ended 31 Mar 2024 |
6 months ended 31 Mar 2023 |
12 Months ended 30 Sep 2023 |
|
(Unaudited) |
(Unaudited) |
(Audited) |
|
Earnings |
GBP |
GBP |
GBP |
Loss from continuing operations for the period attributable to the equity holders of the Group |
(661,687) |
(478,269) |
(1,397,967) |
Number of shares |
|||
Weighted average number of Ordinary Shares for the purpose of basic and diluted earnings per share |
|||
210,540,876 |
168,803,923 |
200,041,594 |
|
Basic and diluted loss per share (pence) |
(0.31) |
(0.28) |
(0.70) |
There are no potentially dilutive shares in issue.
11. 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 2023: £18,000 and 30 Sep 2023: £36,000).
12. Reclassification
During 2024, the Group discovered that share premium had been erroneously classified as share capital and administration expenses captured as share issue costs for interim accounts as at 31 March 2023. These errors has been corrected by restating each of the affected financial statement line items for prior periods. The following table summarises the impact on the Group’s consolidated accounts.
Impact of reclassification |
|||
As previously reported |
Restatement |
As restated |
|
|
GBP |
GBP |
GBP |
Total assets |
7,332,461 |
– |
7,332,461 |
Total liabilities |
(1,215,363) |
15,000 |
(1,200,363) |
Net assets |
6,117,098 |
15,000 |
6,132,098 |
Share capital |
1,931,316 |
(656,250) |
1,275,066 |
Share premium |
7,428,329 |
671,250 |
8,099,579 |
Warrants reserve |
402,148 |
– |
402,148 |
Translation reserve |
7,264 |
– |
7,264 |
Retained earnings |
(3,651,959) |
– |
(3,651,959) |
Total Equity |
6,117,098 |
15,000 |
6,132,098 |
There is no material impact on the Group’s basis or diluted earnings per share and no impact on the total operating, investing or financing cashflows for the half year ended 31 March 2023.
13. Events after the reporting date
On 10 April 2024, the Company announced the receipt of its third tranche US$1 million funding from the United States International Development Finance Corporation (“DFC”). This payment, representing a further 20% of the full US$5 million DFC grant further supports the ongoing Orom-Cross Definitive Feasibility Study (“DFS”) costs, bringing the total received to US$3 million since the agreement was signed in Sept 2023. 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.
#BRES Blencowe Resources PLC – Corporate Presentation Updated
Blencowe Resources (BRES: LON) wishes to advise it has updated its corporate presentation which can be found on the Company’s website (www.blencoweresourcesplc.com).
The corporate presentation provides and up to date overview of the Company, its assets and strategy. The Company will be updating its presentation regularly in the forthcoming months and will notify interested parties upon each material update.
A direct link to the presentation: https://blencoweresourcesplc.com/presentation/
For further information please contact:
Blencowe Resources Plc Sam Quinn (London Director) |
+44 (0)1624 681 250 |
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 |
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/blencowe-resources/
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 completing the Definitive Feasibility Study prior to commencing production of graphite concentrate.
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 – 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
|
#BRES Blencowe Resources PLC – Investor Webinar & Updated Presentation
Blencowe Resources (LSE:BRES), is pleased to announce that it will host a shareholder webinar and Q&A on Tuesday 9 May 2023 at 12:00pm UK time (19:00pm WST time).
The call will be hosted by Blencowe’s CEO, Mike Ralston who will discuss the Company’s recently announced news relating funding assistance for the further development of Blencowe’s Orom-Cross graphite project from the United States Government’s Development Finance Corporation.
Registration Details:
A recording of the webinar will also be made available on the Company’s website following the event. Investors are invited to register using the following link:
https://us02web.zoom.us/webinar/register/WN_AuIvebCoTJ-neLmgOWOaYQ
Shareholders who wish to do so are invited to submit questions via email to: info@blencoweresourcesplc.com
Latest Corporate Presentation:
An updated copy of the Company’s corporate presentation can be found on the Company’s website at:
https://blencoweresourcesplc.com/presentation/
Video Interview:
A link to a recent video interview Mike Ralston on the Proactive Investors platform is below:
Company Newsletter
Interested investors can also sign up for the Company Newsletter here:
https://blencoweresourcesplc.com/contact/
Contacts
Blencowe Resources Plc Sam Quinn (London Director) |
info@blencoweresourcesplc.com +44 (0)1624 681 250 |
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 |