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Blencowe Resources #BRES Engages Leading Global Sustainability Consulting Firm ERM to Build Strong ESG Platform

Blencowe Resources (“Blencowe” or the “Company”) is pleased to announce that is has engaged with one of the leading worldwide consultancy firms specifically relating to life cycle sustainability and ESG (environmental, social and governance) credentials.  ERM has led the way in this field globally for some time and their involvement with Blencowe will greatly assist both the Company and its two resource projects deliver a more sustainable pathway into the future.

ERM have been engaged to consider all aspects in this regard and to map out a series of initiatives that will put Blencowe at the front end of the market in terms of delivering green graphite products.  As the world moves towards decarbonisation, electric vehicles (EVs) and clean energy technologies offer a path towards a more sustainable future, however these technologies are mineral intensive and the efficient production of these minerals will play a key role in the clean energy transition.  Graphite is the primary anode material and the single largest component of lithium-ion batteries and as such it has an important role within this drive towards sustainability, both in terms of what the end product is used for as well as how it is produced.  Green graphite may be described as graphite that is delivered with a low environmental footprint, including energy efficient production.

It is not enough that one of the principal uses of graphite moving forward will be within the lithium-ion battery that power EVs, and which ultimately will greatly reduce the number of fossil fuel-driven vehicles; it is also important to produce that graphite within a mining and processing environment that is life cycle sustainable and delivers as low emissions as possible.

Blencowe believes that delivery of green graphite will increase the demand for its products as end users are all coming under increasing pressure to audit their supply chains more closely to ensure the products they use are delivered by companies with strong ESG credentials.  Furthermore, Blencowe believes its Orom-Cross graphite project will be more likely to attract investors to finance production if it has these properties.  As a result the Company has engaged ERM to work with it to deliver a range of policies, targets and initiatives to ultimately deliver green graphite.

Some of the key messages Blencowe will underline within this programme include:

·    Publicly acknowledge global ESG initiatives and develop policies to ensure the Company is managing its projects (and ultimately operations) to the required standards.

·    Put policies in place within Blencowe to consider key areas such as climate control, supply chain responsibility, human rights, indigenous engagement, risk management and cultural awareness.

·    Actively supporting social responsibility within the local and regional communities.

·    Ensure governance is managed to highest possible standards

·    Continue to place environmental impact at the forefront of strategic development initiatives.

All of these focal points will be considered in day to day activities as well as the various feasibility studies that Blencowe is preparing in order to take Orom-Cross graphite project into production next year.  As practical examples the Company is already considering options to replace diesel generated power at the mining operation with solar farms, with use of hydro-electric power off the national grid as backup.  Electric drying of product through the processing facility will also be considered, plus dry tailings to improve the environmental footprint as well as the most energy efficient logistics solution to move end-product to market.

Legal Agreements are already in place providing the local community with compensation payments for use of their land, and this is already making a huge difference to their farming operations.  An ongoing Educational Trust is in place which is giving local community students the opportunity for further education opportunities that would not have been available prior, and this will continue and grow moving forward.

Blencowe will ensure that all of this is done within the delivery of a commercially viable operation as that remains the ultimate goal, but the Company believes both profitability and sustainability can and should be delivered together.

Executive Chairman Cameron Pearce commented:

“We acknowledge that the world is changing fast and ESG awareness is more prominent that ever before.  We believe we should do more than lip service in this regard, to play our role within this climate change revolution by constantly improving our environmental efficiency as well as building our social and governance credentials.  By bringing in one of the leading sustainability consultancy firms in the world to advise us we are underlining our commitment within this key area.  Green graphite is the way forward and we will target delivery of some of the cleanest end-products when we commence our graphite operation at Orom-Cross from 2023.”

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

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 and Blencowe is moving through the Feasibility Study phase as it drives towards first production targeted for 2023.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 24.5Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Akelikongo Nickel Project

Akelikongo is a highly prospective nickel sulphide exploration project that has previously had considerable work completed by Rio Tinto and Sipa to establish three mineralised lenses to date.  It represents an opportunity for Blencowe to add further value through a targeted work programme that will seek to delineate higher grade and thicker intercepts of nickel.

Nickel sulphide deposits are rare and valuable and the prospect of further exploration success gives Blencowe suitable incentive to develop this asset under a structured earn-in agreement, whereby 100% of the asset can ultimately be acquired for US$1.5m, 100% payable in shares.

Blencowe Resources #BRES – Investor Webinar Call

 

Blencowe Resources (BRES:LON), is pleased to announce that it will host a shareholder conference call and Q&A via Zoom conferencing on Monday 11 April 2022 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 updated JORC Mineral Resource Estimate, as well as the Company’s upcoming prefeasibility study (“PFS”) and strategy moving forward.

Registration Details

Investors who have not yet registered are invited to do so using the following link:

https://us02web.zoom.us/webinar/register/WN_PcAeugdNQs2oZksABsUD1A  

Shareholders who wish to do so are invited to submit questions via email to: info@blencoweresourcesplc.com  

The most recent copy of the Company’s corporate presentation can be found at the following link: https://blencoweresourcesplc.com/presentation/  

Please note that on the day of the call that until the Q&A session has begun that all participants will initially be muted without audio with the exception of Company management. A recording of the call will also be made available on the Company’s website following the call.

Interested investors can also sign up for the Company Newsletter here:

https://blencoweresourcesplc.com/contact/  

Alan Green covers Kavango Resources #KAV and Blencowe Resources #BRES on this week’s Stockbox Research Talks

Alan Green covers Kavango Resources #KAV and Blencowe Resources #BRES on this week’s Stockbox Research Talks

Blencowe Resources #BRES Provides PFS Update for Orom-Cross Graphite Project in Uganda

Blencowe moving to complete PFS on Priority Project by mid-year as precursor to implementing First Graphite Production from 2023

Highlights

·    Blencowe acquired world class Orom-Cross graphite project less than 2 years ago; has been on fast-track development towards production ever since.

·    Extensive infill drilling programme was completed in 2021 to provide updated JORC Resource estimate for use within Pre-Feasibility Study (“PFS”)

·    Phase Three Metallurgical test work near completion to provide fact sheets to users on end products and process flows to achieve them

·    Work underway in all facets to deliver high quality PFS by mid-year target date

Blencowe Resources (“Blencowe” or the “Company”) is pleased to provide an update on its ongoing Pre-Feasibility Study at its priority Orom-Cross graphite project.  Orom-Cross is a substantial graphite deposit with an estimated 2-3 billion tonnes, of which the first 20 years life of mine has already been drilled out.  However the deposit is so vast that this represents less than 1% of the estimated graphite within the tenements.  Furthermore, the graphite is shallow and Blencowe will be mining to just 25 meters which means low cost mining from a free dig open cut operation.

The Preliminary Economic Assessment (“PEA”) for Orom-Cross (completed September 2021) provided the basis for a large scale 75,000tpa graphite operation, however Blencowe has indicated that it will scale this down in the early years to allow for a lower risk, lower capex start-up, around 25,000tpa of high grade concentrate.  There will be provision for ramping this plant size and production rate up quickly over the first ten years to accommodate what is expected to be a surge in demand for flake graphite, predominantly for use within lithium-ion batteries for electric vehicles (EVs).

The Company is working closely with its specialist technical partner Battery Limits to deliver a low cost mining operation that will put Orom-Cross in the lowest percentile of worldwide graphite producers, which not only provides more margin and earnings but also de-risks the operation significantly.  Low capital costs to implement and low operating costs once in production are massive advantages to any mining operation.

Currently Blencowe is awaiting the revised JORC Resource estimate for Orom-Cross, based on the extensive infill drilling programme from 2021, and its geological partner Minrom will provide this update shortly.  This JORC Resource is expected to increment the 16Mt at 6.0% TGC that was announced to market in 2021 and provide additional tonnes that can be utilised for a much longer mine life than previously indicated in the PEA.  In parallel work is being completed on Phase Three metallurgical test work to refine the end products that will be delivered as concentrate from Orom-Cross, and these results are also expected shortly.  Phase Two met test work indicated a high quality array of end products that should be sought after in the market, and Phase Three is expected to underline this further by confirming the marketable characteristics of the different mesh size products and producing concentrates for consumer testing prior to pilot plant production .

One of the key additions within the PFS (from the 2021 PEA) is the expectation that Blencowe will deliver a pilot plant by 2023 in order to product small quantities of these same end products to pre-qualify sales into end users.  This is seen as a necessary and integral step in order to sell higher quantities of graphite concentrate from 2025 onwards when the main plant is expected to be commissioned.

Furthermore, Blencowe is also looking at all options to deliver green graphite products via a project that leans heavily on renewable energy and other sustainable components.  This is seen as a very important objective within the PFS and the strategy moving beyond.

All other areas within the PFS are going to plan, with work underway on all key areas including infrastructure, energy, roads, water, tailings, logistics, sales and marketing, plus plant and camp design.

Cameron Pearce, Blencowe’s Executive Chairman commented;

“Blencowe is moving quickly to establish itself as a producer of premier grade green graphite products, delivered at a low operating cost to both de-risk and to ensure highest possible margins.  The PFS is exploring all options, including a pilot plant from 2023 as a precursor to the main plant commissioned by 2025.  Graphite demand is forecast to expand considerably from 2025 onwards and Blencowe wants to be positioned by then not only as a producer but also ready and able to expand quickly and cost-effectively to take advantage of growing worldwide demand.  Events in Eastern Europe over the past month have underlined the importance of supply chain diversification and we aim to provide a high quality alternative supply route for a key battery metal, within a low risk location.

We have also recently added a highly prospective nickel sulphide project into our portfolio as well, to further expand our upside.”

We have come a long way in the 2 years since we acquired Orom-Cross, and the upswing in demand that we are seeing for the products we will produce has fully justified our strategy.  The next important step will be to provide the market with a clear picture of what our production plans ahead look like, including pre-qualification of sales into end users over a longer period so they can all fully understand the characteristics of the products we will deliver prior to expansion into full production mode.”

 

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

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 and Blencowe is moving through the Feasibility Study phase as it drives towards first production targeted for 2023.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 16.3Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Akelikongo Nickel Project

Akelikongo is a highly prospective nickel sulphide exploration project that has previously had considerable work completed by Rio Tinto and Sipa to establish three mineralised lenses to date.  It represents an opportunity for Blencowe to add further value through a targeted work programme that will seek to delineate higher grade and thicker intercepts of nickel.

Nickel sulphide deposits are rare and valuable and the prospect of further exploration success gives Blencowe suitable incentive to develop this asset under a structured earn-in agreement, whereby 100% of the asset can ultimately be acquired for US$1.5m, all payable in shares.

Blencowe Resources #BRES – Investor Webinar Recording

Blencowe Resources (BRES:LON), is pleased to announce that a recording of the Investor Webinar, held on 24 February 2022, has been uploaded on the Homepage and ‘Investors’ section of the Company’s website (www.blencoweresourcesplc.com).

UK Investor Magazine Podcast – Barclays, Rio Tinto, and Rising Rates with Alan Green – We cover Rio Tinto #RIO Barclays #BARC Mosman Oil and Gas #MSMN and Blencowe Resources #BRES

investor

 

The UK Investor Magazine Podcast is joined by Alan Green as we explore UK equites and key market themes.

We start by questioning the current narrative and if markets are underestimating the risk of rising rates as investor attention shifts to Eastern Europe.

Rio Tino is one of two FTSE 100 companies reporting record profits on Wednesday as rising commodity prices saw earnings soar and gave the board confidence to hike the dividend, making Rio Tinto one of the FTSE 100’s top dividend payers.

Barclays also reported record profits as the banking group enjoyed strong investment banking activity and the reversal of impairment charges. Income investors will be pleased Barclays is also raising their dividend.

Mosman Oil and Gas recently released a dramatic increase in production figures and has updated the market of developments at exploration projects concerned with Helium resources.

We cover the latest developments at Blencowe Resources which is working to supply the EV market.

Barclays, Rio Tinto, and Rising Rates with Alan Green

Blencowe Resources #BRES – Result of AGM

Blencowe Resources Plc (“Blencowe Resources”) (LSE: BRES) is pleased to announce that at the Company’s Annual General Meeting held earlier today, all resolutions were duly passed .

Ends

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 Securities Limited

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 – Corporate Presentation & Investor Webinar Call

Blencowe Resources (BRES:LON), is pleased to announce that an updated Corporate Presentation has been uploaded to the ‘Investors’ section of the Company’s website incorporating updates relating to its Orom-Cross graphite project and inclusion of news slides relating to the recently announced acquisition of the Akelikongo nickel sulphide project.

The Company’s website address is www.blencoweresourcesplc.com

Investor Webinar Call

An Investor Webinar Call hosted by CEO Mike Ralston will take place on Thursday 24 February 2022 at 10:00am UK time (6:00pm WST time). Registration details are below:

Please note that those who have already successfully registered need not do so again.

Registration Details

Investors who have not yet registered are invited to do so using the following link: https://us02web.zoom.us/webinar/register/WN_NPAroCXpT6OQIWKP1Xox1Q  

Shareholders who wish to do so are invited to submit questions via email to info@blencoweresourcesplc.com  

The most recent copy of the Company’s corporate presentation can be found at the following link:   https://blencoweresourcesplc.com/presentation/  

Please note that on the day of the call that until the Q&A session has begun that all participants will initially be muted without audio with the exception of Company management. A recording of the call will also be made available on the Company’s website following the call.

**ENDS**

Contacts

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

info@blencoweresourcesplc.com

+44 (0)1624 681 250

 

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

Brandon Hill Capital Limited

Jonathan Evans

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

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

 

Blencowe Resources #BRES Acquires Nickel Sulphide Project in Uganda

Blencowe Acquires Right to Earn-into Highly Prospective Akelikongo Nickel Sulphide and Copper Project (“Project”) located near to existing Orom-Cross Project in Northern Uganda. Akelikongo further enhances emerging portfolio of Battery Metals Minerals

Highlights

·   Acquisition represents a very exciting opportunity for Blencowe to add a highly prospective nickel sulphide project to its existing world class Orom-Cross graphite project in Uganda

·    The Project was previously jointly owned by Rio Tinto and ASX listed Sipa Resources within a JV until May 2020.

·    US$15 million previously spent by JV partners on nickel and copper exploration.

·    19,000m of diamond, RC and RAB drilling completed.

·    Continuous mineralisation over 800m strike within massive sulphides already established.

·   Further airborne electromagnetic (EM) and downhole EM work has been planned to further test the identified anomalies as well as proximal targets.

·    Phase 1 work funded from existing cash resources.

·   Akelikongo is located approximately 100kms from the existing Orom-Cross graphite project which has potential for significant operational synergies.

·    Addition of a highly prospective nickel sulphide project into widely predicted and emerging nickel supply shortfalls is considered highly advantageous for Blencowe’s portfolio.

Strategy to Enhance Battery Metals Portfolio

Blencowe Resources Plc (LSE: BRES) is pleased to announce the addition of a highly prospective nickel sulphide and copper project (“Akelikongo” or the “Project”) to complement its existing high-grade graphite project in Uganda.

This Project underlines Blencowe’s ambition to become a diversified producer of high-quality source materials for the battery metals industry into the future, mining these within a safe jurisdiction from which to successfully develop long term resource assets.

Nickel is another critical input within the lithium-ion (“Li-ion”) battery, being an essential metal within the cathode.  The most common Li-ion batteries are a Nickel Cobalt Aluminium (NCA) which uses ~80% nickel, and the Nickel Manganese Cobalt (NMC) which uses ~33% nickel (however newer formulations of the NMC are using up to ~80% nickel).  A single Tesla battery uses approximately 30kgs of battery grade nickel in addition to 50kgs of graphite.

Although both oxide and sulphide ores can be converted into class 1 nickel for use in batteries, processing of sulphide ores, as found at Akelikongo, is technologically much easier and cheaper.  Nickel laterites (oxides) are the more dominant ore type in most recent major nickel discoveries and sulphides are much rarer.  Processing nickel laterite ore into battery grade nickel sulphate can be achieved using a high-pressure acid leach process (“HPAC”) but the economic feasibility of this remains questionable, as aside from high operating costs it comes with environmental concerns.  This makes nickel sulphide deposits increasingly more valuable ahead.

Cameron Pearce, Blencowe’s Executive Chairman commented;

“Akelikongo represents a very exciting and low cost entry for Blencowe to add a highly prospective nickel sulphide project to our existing advanced graphite project at Orom Cross.  Nickel is one of the most sought after metals at the moment and demand is set to soar even higher over the next decade.

The structure of the transaction means we are acquiring a nickel discovery with historic spend of US$15 million for just $1.5 million in deferred share consideration, instead ensuring our cash is deployed in advancing the asset and unlocking incremental value.

We believe graphite and nickel have many synergies at a higher level as both are key Li-ion battery metals and both will be in significant demand by battery producers for electric vehicles (“EVs”) moving forward, hence the opportunity to develop two such projects in tandem is very appealing.  Furthermore, we can see a number of synergies at the operational level based on the two projects being located near to one another.”

He added “The EV market is continuing its rapid expansion and we are seeing huge investments being made by substantial companies at various different levels within the full EV product cycle as they move to gain lost ground on the market leaders.  We have seen significant prices rise in all battery metals in 2021 and this is forecast to continue ahead.  We are also seeing a philosophical trend towards less reliance on China as the dominant source of most EV components, and a paradigm shift where manufacturers are prepared to offer incentives to move further up the supply chain to secure critical offtake. 

All this bodes well for Blencowe as we continue to position ourselves ahead as a major supplier of key battery metals”.

Akelikongo Project

Akelikongo is considered a highly prospective early-stage nickel sulphide exploration project located in Northern Uganda, near to the town of Kitgum which is the regional centre near to where Blencowe’s existing Orom Cross graphite project is located.  The two projects are highly synergistic in terms of their proximity and operations will be from the current Blencowe office in Kitgum.

Akelikongo has 112 sq km of granted exploration license and the project comes with considerable data from previous work conducted by the vendors within their Joint Venture.

A Joint Venture agreement was formed between Sipa Resources (“Sipa” or “Vendor”) and Rio Tinto in August 2018 where the latter company agreed to spend into the project, seeking a material nickel sulphide deposit.  In total nearly 19,000m of regional drilling has been conducted by the parties over the past five years.  The most prospective of all the work completed to date has been at Akelikongo, where three lenses at various depths have already been identified, with EM (electromagnetic) work and drilling both identifying massive sulphides.

Approximately US$15 million has been spent to date understanding the geology, geochemistry and the geophysics within the Akelikongo tenement and the local region, and then drilling the most prospective areas.  This work will help Blencowe to focus its own efforts into work programmes that it believes will deliver the most value ahead.

Other nickel targets were identified in the regional programme around Akelikongo but have yet to be explored in detail. Rio Tinto exited the JV in 2020 when the price of nickel was $12,000/tonne versus $24,000/tonne today. Blencowe believes the main target, Akelikongo, has sufficient exploration potential to become a nickel project in its own right and it will focus its efforts there to delineate higher grade and thicker intercepts of nickel and copper mineralisation going forward.

The regional exploration targets also warrant additional exploration.

Three nickel mineralised lenses have been identified based on detailed examination of cross-sections, long-sections, level plans and visualisation of data in 3-D mineral exploration software.  The mineralised lenses have an average grade of 0.37% Ni and 0.12% Cu and thicknesses range from several meters to 25 meters.

Shallow intercepts within the massive sulphides include:

·    41m at 0.5% Ni and 0.1% Cu, from 34m below surface

·    11m at 0.42% Ni and 0.12% Cu, from 38m

·    8m at 0.73% Ni and 0.12% Cu (includes 3m at 1.1% Ni), from 33m

·    22m at 0.36% Ni and 0.13% Cu, from surface

Forward Exploration Program

Blencowe will undertake the following exploration program at Akelikongo during 2022:

Phase One (1H 2022)

·    Down hole EM (“DHEM”) on the holes that have not been read;

·    EM at surface to the northwest of Akelikongo to trace the mineralisation down-plunge and along strike;

·    Airborne EM over regional targets identified;

Phase Two (2H 2022)

·    Diamond drilling along-strike and down-plunge of the identified mineralisation; and

·    Diamond drilling of targets identified from the DHEM and the EM surveys.

This program above fits neatly into the consideration milestones that have been set for Blencowe to earn into the project, both in terms of cost and timings.

Acquisition Structure

The Company will acquire 100% of the Project through an earn-in (“Earn-In”) over four separate milestones. The Earn-In will require the Company to spend a maximum of US$2.75m over 3 years on exploration on the Project and issue US$1.5m of consideration shares to the Vendors over four success related milestones in that period. The Vendors will retain a Net Smelter Royalty (“NSR”) of 1.5% on the Project subject to successful completion of all four milestones.

The Vendor has agreed to a 6-month lock up on the receipt of each tranche of consideration shares.

Milestone

Consideration

Cumulative

Earn in

1

US$250,000 spent on Project over first six months to earn first 20%.  If successful and Blencowe moves to Stage 2 thereafter, US$350,000 of consideration shares issued to Vendors.

20%

2

A further US$500,000 spent on the Project over the next six months to earn an additional 30%.  If Blencowe moves to Stage 3 thereafter, additional US$500,000 of consideration shares issued to Vendors.

50%

3

A further US$1m spent on the Project over the next 12 months to earn a further 30%.  If Blencowe moves to Stage 4 thereafter, additional US$650,000 of consideration shares issued to Vendors.

80%

4

A further US$1m spent on the Project over next 12 months to earn the remaining 20%.

100%

The consideration shares will be priced at the time the decision is made to progress the Earn-In through to the next milestone, with exploration results meriting further continuation.  On that basis, the Company believes it will mitigate shareholder dilution as any future issue of consideration shares will reflect the success achieved from exploration at the Project.

The Directors believe this is the best structure to develop an exploration project as it mitigates any requirement to commit cash and/or issue further consideration shares until the exploration program has proven to be successful at each phase. 

Funding

The work program of US$250,000 (~£175,000) for phase one at Akelikongo will be met from existing cash resources following the Company’s recent £2,000,000 capital raise in December 2021. The Company anticipates that the US$500,000 (~£350,000) work programme in phase two can be funded from the exercise of outstanding warrants, given this expenditure is only likely to be incurred based on exploration success in phase one. 

Project Synergies

Blencowe is already committed to developing one significant battery metals project in Uganda, being the Orom-Cross graphite project in the north-east of the country.  The Company believes that the demand for source metals/minerals used in the lithium-ion battery will rise exponentially over the next decade, and we have already seen signs of this in the past year via increased demand for lithium, cobalt, nickel, copper and graphite.  Forecasts for each of these metals show massive supply shortfalls emerging ahead which are anticipated to push prices even higher.

Adding a highly prospective nickel-copper sulphide project into the Blencowe emerging portfolio is therefore considered very advantageous and the Earn-In Agreement provides the Company with a staged approach to develop Akelikongo further; but only to pay tranches of shares as consideration to the vendor at each inflection point if and when the project fulfils set targets.  The majority of consideration shares are back-ended and will therefore only be paid if the project delivers exploration success ahead and if/when the Company elects to progress through each phase.  Blencowe would ultimately target the creation of a Ugandan production hub for two of the most critical battery metal products, however the Company recognises there is still further work required to achieve this goal.

Developing a second battery metal project in the near-environs to Orom-Cross also has major synergistic advantages in that the same in-country management and local relationships can work for both assets, and being located near to each other it will be possible to work them in tandem.

Blencowe has also ensured that the commitment to expenditure for Akelikongo takes into consideration the continued work programmes already in place for Orom-Cross to deliver its key targets so as not to compromise on the excellent progress made there to date.  The Pre-Feasibility Study for Orom-Cross is underway and expected to be completed by mid-year, and the Company expects to release an updated JORC Resource estimate in the near term.

 

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 Securities

Jonathan Evans

Tel: +44 (0)20 7100 5100

jonathan.evans@tavirasecurities.com

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 and Blencowe is moving through the Feasibility Study phase as it drives towards first production targeted for 2023.

Orom-Cross presents as a large, shallow open-pitable deposit, with a maiden JORC Indicated & Inferred Mineral Resource deposit of 16.3Mt @ 6.0% Total Graphite Content. Development of the resource is expected to benefit from a low strip ratio and free dig operations, thereby ensuring lower operating and capital costs.

Akelikongo Nickel Project

Akelikongo is a highly prospective nickel sulphide exploration project that has previously had considerable work completed by Rio Tinto and Sipa to establish three mineralised lenses to date.  It represents an opportunity for Blencowe to add further value through a targeted work programme that will seek to delineate higher grade and thicker intercepts of nickel.

Nickel sulphide deposits are rare and valuable and the prospect of further exploration success gives Blencowe suitable incentive to develop this asset under a structured earn-in agreement, whereby 100% of the asset can ultimately be acquired for US$1.5m, all payable in shares.

#BRES Blencowe Resources – Rescheduling of Investor Webinar

Blencowe Resources (BRES:LON), the graphite explorer developing the Orom-Cross jumbo flake graphite project in Uganda, announces the rescheduling of the Investor Webinar hosted by CEO Mike Ralston from today Thursday 17 February 2022 to Thursday 24 February 2022 at 10:00am UK time (6:00pm WST time). Registration details remain the same and are below.

CEO Mike Ralston commented:

“Due to unforeseen circumstances we have been required to reschedule the webinar. We note the high level of interest registered for the webinar and we look forward to reconvening the webinar next week. I would invite shareholders and interested parties to submit questions in advance should they wish to do so.”

Registration Details

Please note that those who have already successfully registered need not do so again.

Investors who have not yet registered are invited to do so using the following link:

https://us02web.zoom.us/webinar/register/WN_NPAroCXpT6OQIWKP1Xox1Q  

Shareholders who wish to do so are invited to submit questions via email to info@blencoweresourcesplc.com

The most recent copy of the Company’s corporate presentation can be found at the following link:

https://blencoweresourcesplc.com/presentation/ 

Please note that on the day of the call that until the Q&A session has begun that all participants will initially be muted without audio with the exception of Company management. A recording of the call will also be made available on the Company’s website following the call.

 

**ENDS**

Contacts

Blencowe Resources Plc

Sam Quinn (London Director)

www.blencoweresourcesplc.com

info@blencoweresourcesplc.com

+44 (0)1624 681 250

 

Investor Enquiries

Sasha Sethi

Tel: +44 (0) 7891 677 441

sasha@flowcomms.com

Tavira Securities

Jonathan Evans

Tel: +44 (0)20 71005100 jonathan.evans@tavirasecurities.com

First Equity Limited

Jason Robertson

Tel: +44 (0)20 7330 1883

jasonrobertson@firstequitylimited.com

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