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#SVML Sovereign Metals – INFILL DRILLING PROGRAM TO UPGRADE KASIYA RESOURCE
INFILL DRILLING PROGRAM TO UPGRADE KASIYA RESOURCE
· Infill drilling commenced with focus on southern Kasiya, which intends to provide ore feed for first eight years of production
· Program aims to upgrade Mineral Resource Estimate in this area from Indicated to Measured category, allowing conversion of Ore Reserves from Probable to Proven category
· Drilling program designed by Sovereign and overseen by the Rio Tinto-Sovereign Technical Committee
· Aircore and hand auger drilling will be supported by push tube and diamond core drilling
· Resource upgrade expected in early 2025
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Sovereign Metals Limited (ASX: SVM; AIM: SVML; OTCQX: SVMLF) (Sovereign or the Company) is pleased to announce it has commenced an infill drilling program at its Kasiya Rutile-Graphite Project (Kasiya or Project) in Malawi to support ongoing technical studies.
Aircore, supported by push tube/diamond core and hand auger drilling, will upgrade part of the current Mineral Resource Estimate (MRE) planned for Stage 1 production from the Indicated to the Measured category under the JORC (2012) Code.
The drilling is planned to infill the southern part of Kasiya, specifically around previously designated pits proposed to provide ore feed in the first eight years of the Project’s planned production schedule. Ore Reserves in these areas are expected to convert from the Probable to Proven category.
Managing Director, Frank Eagar commented: “Our infill drilling program will target areas of Kasiya where we expect the first seven to eight years of production to come from. The program design was overseen by the Rio Tinto-Sovereign Technical Committee, which again illustrates the benefits of the Rio Tinto partnership since their initial investment in July 2023.”
An offset 200×200 metre program has been designed (see Figure 1), which will result in an average drill spacing of 142 metres. The offset spacing has the advantage of allowing analysis of geology and grade continuity in both orthogonal and diagonal directions. The drilling program will consist of:
1. 250+ aircore holes for over 5,000 metres, with an average depth of 20 metres
2. 250+ hand auger holes for over 750 metres, with an average depth of 3 metres
3. 30 push tube / diamond core holes providing samples for geotechnical analysis and verification sampling with an average depth of 20 metres
4. Several 3-metre-deep pits to obtain detailed rutile grade information from the upper profile and provide additional geotechnical information
All samples will have both rutile and graphite assayed by offsite laboratories in South Africa. Results of the drilling program and subsequent Resource upgrade are expected in early 2025.
Kasiya is already the world’s largest rutile deposit and second-largest flake graphite deposit, with over 66% of the current MRE in the Indicated category.
Figure 1: Planned aircore drill holes (blue dots) over Kasiya pit shells; pilot site in Kingfisher pit shown for scale (black outline)
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Table 1: Ore Reserve for the Kasiya Deposit |
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Classification |
Tonnes |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
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Proved |
– |
– |
– |
– |
– |
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Probable |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
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Total |
538 |
1.03% |
5.5 |
1.66% |
8.9 |
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Table 2: Kasiya Total Indicated + Inferred Mineral Resource Estimate at 0.7% rutile cut-off grade |
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Classification |
Resource |
Rutile Grade |
Contained Rutile |
Graphite Grade (TGC) (%) |
Contained Graphite |
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Indicated |
1,200 |
1.0% |
12.2 |
1.5% |
18.0 |
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Inferred |
609 |
0.9% |
5.7 |
1.1% |
6.5 |
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Total |
1,809 |
1.0% |
17.9 |
1.4% |
24.4 |
Any minor summation inconsistencies are due to rounding
Figure 2: Kasiya map showing rutile grades of the upper blocks of the current MRE block model
The current MRE defined broad and contiguous zones of high-grade rutile and graphite, which occur across a very large area of over 201km2 (Figure 2). Rutile mineralisation is concentrated in laterally extensive, near-surface, flat “blanket” style bodies in areas where the weathering profile is preserved and not significantly eroded. Graphite is depleted near the surface, with grades improving at depths generally >4m to the base of the saprolite zone, which averages about 22m.
Sovereign’s 2022 drill program at Kasiya used push tube core holes to in-fill and convert Inferred mineralisation into the Indicated category. The consistency and robustness of the geology allowed for an efficient conversion of this previously Inferred material on a near-identical one-for-one basis to the Indicated category.
Figure 3: Push tube drilling in action at Kasiya during 2022
Incentive Securities
Subject to shareholder approval, the Company is proposing to issue the following performance rights to Directors (and others (non-PDMR)) following a remuneration review post 30 June 2024:
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Tranche 1 – DFS Milestone (expiring 31 October 2025) |
Tranche 2 – Grant of Mining Licence Milestone |
Tranche 3 – Final Investment Decision Milestone |
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Benjamin Stoikovich |
300,000 |
300,000 |
400,000 |
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Frank Eagar |
300,000 |
300,000 |
400,000 |
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Other key employees and consultants (non-PDMR) |
675,000 |
675,000 |
900,000 |
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +27 21 065 1890 |
Sam Cordin (Perth) +61(8) 9322 6322 |
Sapan Ghai (London) +44 207 478 3900
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat |
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Joint Brokers |
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Stifel |
+44 20 7710 7600 |
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Varun Talwar |
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Ashton Clanfield |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
#FCM First Class Metals – KERRS GOLD PROPERTY EARN-IN AGREEMENT SIGNED
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK listed metals exploration company seeking economic metal discoveries across its extensive Canadian, focused in north west Ontario land holdings, is pleased to announce the signing of the Kerrs Gold earn-in agreement.
Highlights
· The Kerrs Gold Project in Northeastern Ontario holds a historic resource estimate of 386,467 Oz (ounces) of Au (gold) as per the NI-43-101 standard.
· Located in the Timmins Mining Camp which is one of the most prolific camps for gold production in Canada. Nearby producing gold mines are operated by Newmont (Hoyle Pond & Hollinger) and McEwan Mining(Black Fox Complex).
· Accessible by road and close to existing mining and service infrastructure.
· Comprehensive historical data review with a view to creating a greater understanding of the resource and its potential is underway. Results from which will allow for the planning of an initial summer field campaign on the property
Marc Sale First Class Metals CEO Commented:
“The signing of this deal signifies two important events for FCM, firstly reinforcing the concept of identifying opportunities to add value then monetise, secondly the potential acquisition of the Kerrs Gold Project catapults FCM from an explorer to a company with a resource. Given the continuous rise in gold prices, with new all-time highs being reached, the opportunity to earn into Kerrs Gold is an incredibly appealing proposition for FCM”
Kerrs Gold Property Background
Further to the announcement of 3 April 2024 and prior to the expiry of the thirty day exclusivity agreement FCM has now executed an option to purchase agreement with the 100% owners of the Kerr gold property claims. The deal outline is summarised at the foot of this release.
On completion of the terms of the Agreement FCM will control 100% of the Kerrs Gold Project located in northeastern Ontario.
The road accessible Kerrs Gold Deposit consists of 36 units totalling approximately 665 hectares and lies 90 kilometres east-northeast of Timmins, in the Larder Lake Mining Division.
Geologically the Project is located in the Abitibi Greenstone Gold Belt, see Figure 01.
Figure 01 showing the district scale location of the Kerrs gold property as well as significant producing mines in the area.
The occurrence was discovered by Noranda in the late 1970’s and early 1980’s by following glacial dispersion trains ‘up-ice’ to the source. Drilling continued into the late 1980’s, with further drilling in the early to late-2000 and early 2011. The drilling database was used to calculate the 2011 historic resource estimate, with further drilling completed subsequent to the release of the estimate, see Figure 02.
Figure 02 at property scale showing the significant historical sampling as well as the drill grid
Kerrs Gold is considered a stratabound deposit, occurring at the contact of a thick, mafic pillow flow sequence overlying an ultramafic, magnetite-rich flow sequence. Quartz feldspar porphyry sills are spatially located above and below the breccia zones. This stratigraphy is synclinally folded with the deposit lying 350m to 425m below surface. Drilling has traced the main zone 800 metres and remains open in both directions and at depth.
Gold mineralisation occurs as pyritized quartz vein replacement breccias enveloped by quartz fuchsite carbonate vein breccias averaging approximately 10 m and alteration envelopes varying up to 40 m in thickness. Gold tenure is proportional to the pyrite content ranging up to 10% which is commonly disseminated and crystal aggregates in the sheeted, quartz vein replacement breccias. These breccias, averaging 31% quartz, exhibit reasonable correlation conforming to volcano-stratigraphic contacts as well as moderate to good continuity in grade correlations at the lower and upper boundaries of the vein breccia and alteration envelope assemblages.
The Kerrs Gold historical resources estimate of 386,467 Oz Au was disclosed in “NI 43-101 Resource Estimation on the Kerr’s Gold Deposit, Matheson, Ontario” prepared for Sheltered Oak Resources Inc. by Garth Kirkham, P. Geo of Kirkham Geosystems Ltd. And dated June 10, 2011.
FCM is reviewing the resource estimate with a view to it defining further exploration.
Whilst there was further drilling completed after the historic estimate was released FCM is not aware of any more recent resource estimates.
The resource estimation methods and parameters were as follows:
o Forty-one drill holes were utilized to interpolate the KBX Zone.
o Composite length of 2 m was chosen and composites were weighted by length.
o Sectional interpretations were wire-framed to create 3-D solids of the zones.
o Zones were coded to the composites, and the block model, to constrain the modelling process.
o Composites for the mineralised zone were used to interpolate into the blocks foreach zone.
o Ordinary kriging was used as the interpolator.
o Relative elevation modelling was used to guide the ellipse orientation that accounts for the variation in dip due to the synclinal structure.
o A minimum of two composites were used for each block and a maximum of two composites were used per drill hole; a maximum of 12 composites were used per hole.
o A cutting factor was applied for gold with outlier composites limited to 10 g/t Au based on cumulative frequency plots. A zero cut-off grade was used for the manual polygonal method.
The Kerrs historic estimate is an inferred resource as defined in National Instrument 43-101. The table below shows the potential ounces with differing cut of grades. FCM would look at remodelling the resource in order to identify higher grade envelopes for targeting in any proposed future drilling.
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Kerrs Resources Estimate Cut-Off Grade |
TONNES |
GOLD (g/t) |
Metal (OZ.) |
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0.5 |
7,041,460 |
1.71 |
386,467 |
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1 |
5,237,213 |
2.04 |
342,856 |
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1.5 |
3,375,361 |
2.47 |
268,468 |
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2 |
1,936,189 |
3.04 |
188,972 |
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2.5 |
1,165,664 |
3.57 |
133,778 |
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3 |
818,171 |
3.94 |
103,622 |
FCM has already instigated a review of the historical information, particularly the drilling in order to fully appraise the potential of the resource. The review will also include a property-wide appraisal of the potential for further targets for prospecting as well as possible future drilling.
The Kerrs property is not currently permitted and once the data review has been completed in conjunction with ground appraisal a permit will be drafted for consultation with the local First Nations.
The Company plans an immediate review of the historical database to define target areas to both significantly expand the historic resource and to test for additional structures. The Company has yet to verify the historical data.
Terms of Deal
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Due Date |
Share Payments |
Cash Payment (CAD) |
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Upon signing the Agreement |
– |
$6,000 ($10,000 less $4,000 exclusivity deposit) |
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Six months after effective date |
$10,000 |
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Within four months of signing the Agreement on the publication of a prospectus |
CAD20,000 in share value1 |
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On the 1st anniversary of the Effective Date |
CAD30,000 in share value1 |
$30,000 |
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On the 2nd anniversary of the Effective Date |
CAD40,000 in share value1 |
$40,000 |
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On the 3rd anniversary of the Effective Date |
CAD60,000 in share value1 |
$60,000 |
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Total |
CAD150,000 in share value |
$150,000 |
1 Shares to be issued at the mid-price on the day of issue
Ends
For further information, please contact:
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James Knowles, Executive Chairman |
07488 362641 |
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Marc J Sale, CEO |
07711 093532 |
Novum Securities Limited (Financial Adviser)
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David Coffman/ George Duxberry |
www.novumsecurities.com |
(0)20 7399 9400 |
#AYM Anglesey Mining – Blocklisting – Interim Review
Name of applicant: Anglesey Mining plc
Name of scheme: Unapproved Share Option Scheme
Period of return: From 1 October 2023 to 31 March 2024
Balance of unallotted securities under scheme at beginning of period: 6,500,000
Plus: The amount by which the block scheme has been increased since the date of the last return: nil
Less: Number of securities issued/allotted under scheme during period: nil
Equals: Balance under scheme not yet issued/allotted at end of period: 6,500,000
Total Voting Rights
For the purposes of Disclosure and Transparency Rules, at the date of this announcement the total issued share capital is 420,093,017 ordinary shares of one pence each. There are no ordinary shares held in treasury and the total number of voting rights is therefore 420,093,017. This figure may be used by shareholders as the denominator of the calculations by which they will determine whether they are required to notify their interest or a change to their interest in the company, under the FCA’s Disclosure and Transparency Rules.
Contact name: Ian Cuthbertson
Telephone number: +44(0)1407 831275
LEI: 213800X8BO8EK2B4HQ71
#BRES Blencowe Resources – Bulk Sample Processing underway at Pilot Plant Facility in China
Blencowe Resources Plc (LSE: BRES) is pleased to report significant progress on the Definitive Feasibility Study (“DFS”) works for the 100%-owned Orom-Cross graphite project in Uganda including commencement of the 600 tonne bulk sample test work at the Jilin Huiyang New Material Technology Company Ltd (“Jiliin”) facility in China.
Highlights:
· Bulk Sample Processing – commencement of the 600-tonne commercial scale processing at Jilin in China marks a significant step forward for Orom-Cross DFS.
· Off-take Agreements Progress – senior management and potential offtake partners to meet during April 2024 to advance off-take discussions following strong interest in the large-scale test work, samples delivered to date, and Orom-Cross products across the board.
· Final Sample Delivery – both 96% concentrate and 99.95% spheronised purified graphite (“SPG”) provided from this latest bulk sample testing are expected to be delivered in Q2 2024 to potential off-taker parties in sufficient quantity for review, leading to product qualification and ultimately contracts.
Following the delivery of the 600 tonne bulk sample materials to China, processing has commenced at the Jilin facility. This same facility previously conducted successful bulk metallurgical test work for Blencowe on the 100-tonne Orom-Cross sample in 2023.
Blencowe plans to utilise this product to generate large volumes of both 96% concentrate and 99.95% uncoated SPG product for final qualification with potential off-take partners. This process aims to maintain the same consistently high quality as previously delivered via this commercial-scale production process in 2023.
Senior management will visit both China and South Korea over the next few weeks to continue discussions on offtake agreements. Strong interest has been shown to date and Blencowe is confident that this will continue with the ongoing large-scale test work.
Cameron Pearce, Executive Chairman commented;
“This latest 600 tonne bulk sample testing is a critical part of our DFS. We aim to demonstrate that end products maintain the same high quality and purity in commercial scale processing that have already been achieved in all previous testing to date. The 100 tonne testing last year confirmed this quality maintains to scale and we are confident we can achieve similar results from this latest 600 tonne testing. Thereafter we will have sufficient quantity of 99.95% SPG to provide for testing with tier one offtakers for product qualification.”
Mr Pearce added “We are making significant progress across all DFS objectives. Orom-Cross is a world class graphite project with unique characteristics, and its potential is becoming increasingly evident as we deliver each milestone.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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#SVML Sovereign Metals Ltd – COMMISSIONING OF SUSTAINABLE FARMING INITIATIVE
SOVEREIGN COMMISSIONS SUSTAINABLE FARMING INITIATIVE IN MALAWI
· Sovereign has initiated a Conservation Farming Program in Malawi as part of its sustainability initiatives related to the development of Kasiya
· Local farmers will be trained in sustainable farming techniques to increase maize crop yield; protect soil from erosion and degradation; and to improve long term food security
· According to the World Food Program, up to 5.4 million people in Malawi are subject to food insecurity, with many Malawians dependent on subsistence agriculture
· Supporting local communities in addressing their social priorities is a core principle of Sovereign’s ESG Strategy as the company advances the development of Kasiya
· Sovereign’s owner’s team have previously implemented this program at First Quantum Minerals’ Zambian operations where over 7,000 farmers were participating in the program by 2022
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce that as part of its Environmental, Social, and Governance (ESG) Strategy in developing its Kasiya Rutile-Graphite Project (Kasiya), it has commissioned a Conservation Farming Program (Program) in Malawi.
Figure 1. Sovereign team members conducting conservation farming training
Malawi’s food security depends on maize (corn); it is the major staple food crop in Malawi with 60% of cropped land devoted to its production. Sovereign has commissioned the initial Program for 90 Malawian maize farmers from within the project area, of which at least 50% are female. The Program is to provide training in low-input-cost, high-yield sustainable farming techniques, with the aim to provide a platform for the farmers to increase yield and productivity therefore helping to reduce malnutrition and poverty.
Conservation farming as a system aims to protect soil from erosion and degradation and increase crop yields. It involves three main principles:
1) minimum soil disturbance, such as no-till farming,
2) maintenance of a permanent soil cover, such as cover crops or crop residues and
3) diversification of plant species, such as crop rotation.
According to the United States Agency for International Development, 80% of Malawi’s population are smallholder farmers with livelihoods based on agriculture and subsistence farming.
This initiative forms part of Sovereign’s ESG Strategy to develop its tier one Kasiya Rutile-Graphite Project while simultaneously restoring and improving the livelihoods of local communities. The Program is being implemented by the Company’s experienced team on the ground, which previously ran a very successful initiative for First Quantum Minerals Limited’s Zambian operations where its conservation farming program has been effectively operating since 2010. Between 2020 and 2022 harvest crops increased by 67% from 6,000 tonnes to 10,000 tonnes of maize, with over 7,000 farmers in the program at the end of 2022.
Figure 2. Local communities embracing the conservation farming program
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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Nominated Adviser on AIM and Joint Broker |
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SP Angel Corporate Finance LLP |
+44 20 3470 0470 |
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Ewan Leggat Charlie Bouverat Harry Davies-Ball |
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Joint Brokers |
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Berenberg |
+44 20 3207 7800 |
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Matthew Armitt |
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Jennifer Lee |
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Buchanan |
+ 44 20 7466 5000 |
Forward Looking Statement
This release may include forward-looking statements, which may be identified by words such as “expects”, “anticipates”, “believes”, “projects”, “plans”, and similar expressions. These forward-looking statements are based on Sovereign’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Sovereign, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Sovereign makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.
#FCM First Class Metals Plc – Share Placing
First Class Metals PLC (“First Class Metals” “FCM” or the “Company”) the UK listed metals exploration company seeking economic metal discoveries across its extensive Canadian Schreiber-Hemlo, Sunbeam and Zigzag land holdings, is pleased to announce the completion of a private placing of a total of 3,700,000 ordinary shares of 0.1p each (“Ordinary Shares”) at a price of 4.5p (the “Placing Shares”) with a single existing private investor (“Investor”) raising £166,500 (the “Placing”).
The Placing price of 4.5p represents an 10% premium to the middle market price of Ordinary Shares at the close of business 21 February 2024
Director’s-Stock Lending Agreement
The Company does not presently have sufficient headroom to enable the issue and admission of the Placing Shares which are required to be issued pursuant to the Placing without the production of an FCA approved prospectus. The Company is therefore proposing that the Executive Chairman, James Knowles, transfers to the Company by way of a loan such number of Ordinary Shares held by Mr Knowles as are equal to, in aggregate, to the Placing Shares within the terms of the existing share loan agreement (the “Share Lending Agreement”), to facilitate the placing of the Placing Shares by the Company. This loan involves no consideration being paid or security granted to James Knowles.
The transfer of the Placing Shares to the Investor is expected to be completed on or around 29 February 2024.
The Share Lending Agreement provides for the allotment of an aggregate of 3,700,000 new Ordinary Shares to James Knowles by 30 June 2024 to replace the shares loaned under the terms of the Share Lending Agreement. Application will be made to the LSE and FCA for the admission of the Ordinary Shares to be issued to Mr Knowles at the appropriate time.
No further fees over and above the amount charged by the directors in the announcement of the 24 November 2023 will be paid.
Related Party Transaction
James Knowles is a director of the Company. The Share Lending Agreement is considered to be a material related party transaction (the “Related Party Transaction”).
Marc Sale, Marc Bamber and Andrew Williamson, being the independent directors for the purpose of this Related Party Transaction consider that the terms and conditions are fair and reasonable insofar as the shareholders of the Company are concerned.
Total Voting Rights
The total number of voting rights in the Company remains unchanged. The figure of 82,045,729 may be used by shareholders in the Company as the denominator for calculations to determine if they have a notifiable interest in the share capital of the Company under the Disclosure Guidance and Transparency Rules, or if such interest has changed.
Ends
For further information, please contact:
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James Knowles, Executive Chairman |
07488 362641 |
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Marc J Sale, CEO |
07711 093532 |
Novum Securities Limited
(Financial Adviser)
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David Coffman/ George Duxberry |
www.novumsecurities.com |
(0)20 7399 9400 |
Blencowe Resources #BRES – Subscription & Conditional Subscription
New Investor
The Company is pleased to report it has raised US$500,000 (£392,350) at 5 pence per share with a specialist African-based investor (“African Investor”) through the issue of 7,847,000 new ordinary shares. The investor has undertaken extensive due diligence over the last four months and the current investment is viewed as an initial entry into the project ahead of anticipated further investment as required. The shares have been issued to the African Investor under the Company’s existing headroom.
Additional Investor and the Issue of a Prospectus
In addition, the Company has conditionally raised a further £2,500,000 at 5 pence resulting in the issue of 50,000,000 new ordinary shares to an additional strategic investor (“Strategic Investor”). The Company is required to publish a prospectus on the basis that it will be issuing more than 20% of its issued share capital in a 12-month period. The Company and its advisers are in advanced stages of finalising the prospectus. The Company anticipates publishing the prospectus this month and will update shareholders prior to its publication.
Conditional Subscription
The Strategic Investor has received investment committee approval and made a firm commitment to subscribe. The subscription by the Strategic Investor is subject to the Company issuing the prospectus, a general meeting by the Company to approve certain resolutions relating to the issue of new ordinary shares, settlement of the investment and the issue and allotment of the new ordinary shares.
For the avoidance of doubt, the subscription by the African Investor is firm and not contingent on any investment by the Strategic Investor. The subscription funds have been received from the African Investor and the Company shall apply for the new ordinary shares to commence trading.
Admission
An application has been made for 7,487,000 new ordinary shares to be admitted to trading on the official list and the London Stock Exchange from 8.00 a.m. on Friday 9 February 2024 (“Admission”).
In accordance with the FCA’s Disclosure Guidance and Transparency Rules, the Company confirms that following Admission, the Company’s enlarged issued ordinary share capital will comprise 217,226,950 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.
Mike Ralston, CEO of Blencowe Resources, commented: ‘I am pleased to provide this positive update with respect to our fundraising initiatives. As previously reported, we have already received US$2,000,000 in grant funding from the US International Development Finance Corporation (“DFC”) out of their approved US$5,000,000 grant. A further US$1,000,000 is expected from the DFC in the near term as the next milestones have been met.
We now welcome a new specialist African investor to the register following the fundraise of US$500,000 at 5 pence, which represents a healthy premium to the current market price and underlines their decision to invest for the long term after an extensive due diligence exercise. We reasonably believe that they will look to invest further as our relationship is built.
Moreover, we are now in the closing stages of a further subscription of £2.5m at 5 pence from another Strategic Investor and we are busily working with our advisers to finalise and issue the prospectus.
Both these investments at 5p underline the value proposition offered by Blencowe and will provide us with a good runway to complete the DFS this year. We are making rapid progress in de-risking the Orom-Cross project, especially following the recent letter of interest received from the DFC to provide a funding solution for the build and development of Orom-Cross. We will continue to work closely with the DFC as we complete the DFS to ensure construction can commence at Orom-Cross in a timely fashion.
I believe it is testament of the quality of the Orom-Cross project that we have been able secure funding partners like this at a time when the junior mining sector continues to face significant difficulties with respect to sourcing capital. We are hoping to deliver an NPV in the DFS significantly higher than the post-tax NPV of US$482M achieved in the Pre-Feasibility Study and will keep shareholders updated on our progress.’
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
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Twitter https://twitter.com/BlencoweRes
#BRES Blencowe Resources – DFC LOI REGARDING PROJECT FINANCING
Blencowe Resources Plc (LSE: BRES) is pleased to announce it has received a formal Letter of Interest (“LOI”) from the US International Development Finance Corporation (“DFC”) in which the DFC has indicated its willingness to participate in debt funding for the Orom-Cross graphite project (“Orom-Cross or the “Project”) in Uganda, subject to all necessary due diligence. This comes following recent discussions with DFC project funding division and follows the 2023 agreement with the DFC’s technical assistance division, who have already entered into a US$5 million Technical Assistance Grant (“TAG”).
To date US$2 million of grant funds have been received from the DFC under the TAG, with the balance expected during the course of 2024 as certain milestones are met. The TAG also provided for the DFC to have the right to be mandated to directly provide (and/or arrange for) financing or investment for the Project on commercial terms.
This LOI is the first step of engagement with the DFC project funding division to advance the project financing process. During the course of 2024 Blencowe will work closely with the DFC to reach a decision to mine subject to the DFS results and other due diligence. Graphite is high on the US Government critical metals and minerals list and their strategy is to open up long term supply chains of graphite. Demand for graphite is accelerating fast and is expected to continue growing into the future due mainly to its non-replaceable role within the lithium-ion battery that stores energy.
The Company is seeking to position Orom-Cross to 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 is being audited on their sustainability credentials by Original Equipment Manufacturers (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.
Cameron Pearce, Executive Chairman commented;
“This Letter of Interest is an important next-step in the process for DFC to consider project financing support to build Orom-Cross into a producing mine. Project funding will be crucial for the Company this year as we work to conclude the DFS and this engagement with the DFC continues to underpin our long-term relationship with the DFC, as lead mandated partner, to assist in this exercise.”
Mr Pearce added “Our executive management team will be meeting DFC in the near term to evaluate the project implementation strategy and build on the momentum we have already created together. We believe this is a unique partnership that is significantly de-risking Orom-Cross and we will continue to showcase this exceptional asset as we deliver the DFS results this year.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
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Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
#BRES Blencowe Resources – Receipt of Further $1m tranche from the DFC
Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has received its second tranche US$1 million funding payment from the United States International Development Finance Corporation (“DFC”). This represents a further 20% of the full US$5 million DFC grant to be utilised for Orom-Cross Definitive Feasibility Study (“DFS”) costs, with US$2 million received in total to date since this agreement was signed in 2023.
This tranche was disbursed on the completion of several key goals as delivered within the DFS, namely;
· Tailings processing and disposal options study completed.
· Spheronised purified graphite (“SPG”) test work completed (both coated and uncoated products).
· Processing plant flowsheet finalised through 100 tonne pilot plant testing.
· Further 600 tonnes bulk sample mined and ready for export to China for stage two commercial scale testing.
Blencowe can report that all of the above tasks were successfully completed with results reported to market in 4Q 2023. The SPG test work completed by a leading US graphite technical expert was particularly noteworthy as results indicate Orom-Cross graphite can be purified up to a 99.995% product, which is rare and puts the graphite quality from Orom-Cross at the very highest level.
This is of great significance when considering niche markets, product pricing and offtake relationships.
The Company is well on its way to completing the milestones as required for disbursement of the third DFC tranche of grant funds, which will deliver another US$1 million for additional DFS work.
Additionally the Company is continuing to see strong levels of serious interest from a range of high quality offtake groups and strategic parties.
Cameron Pearce, Executive Chairman commented;
“Following successful completion of key feasibility study milestones this latest tranche of grant funding we have received from DFC is valuable to Blencowe and we extend our sincere appreciation to the DFC for their ongoing support. The DFC remains a critical strategic partner of Blencowe with discussions underway as to potential funding support from the DFC for the full Orom-Cross graphite project implementation ahead.”
Mr Pearce added, “I would also like to extend our thanks to our entire operational team both in-country and beyond for their steadfast commitment to achieving objectives and driving progress with the Orom-Cross feasibility study. Orom-Cross is a unique graphite project with its rare suite of key attributes amongst its peers. The DFC identified these outstanding characteristics in their due diligence process when assessing Orom-Cross and investors should note that other strategic parties are also taking notice, which provides a strong platform for activities in 2024.”
For further information please contact:
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Blencowe Resources Plc Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250
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Investor Relations Sasha Sethi |
Tel: +44 (0) 7891 677 441
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Tavira Financial Jonathan Evans |
Tel: +44 (0)20 3192 1733
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First Equity Limited Jason Robertson |
Tel: +44(0)20 7330 1833 jasonrobertson@firstequitylimited.com
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Twitter https://twitter.com/BlencoweRes
#SVML Sovereign Metals – HIGHLY EXPERIENCED SOCIAL SPECIALIST FIRM APPOINTED TO ASSIST IN ADVANCING KASIYA
· African-based social specialist consultancy, SocialEssence has been appointed to lead social and community development programs for Sovereign in Malawi
· SocialEssence joins Sovereign’s Owners Team and will design, implement, and manage several social and community initiatives which will feed into the DFS and permitting requirements
· SocialEssence will build upon existing relationships cultivated over the last decade, between Sovereign and highly supportive local communities at Kasiya
· SocialEssence has a strong and successful track record of implementing social responsibility programs across southern Africa, including at First Quantum Minerals’ Zambian operations Trident and Kansanshi, where over 7,000 farmers participate in a conservation farming program, which was initiated and led by SocialEssence’s current Livelihood Specialist.
· The appointment aligns with the Company’s objective to develop a socially responsible and sustainable operation which will provide significant long term and sustainable benefits to local communities.
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (the Company or Sovereign) is pleased to announce the appointment of SocialEssence (Pty) Ltd (SocialEssence), a specialist social performance consultancy, who will assist in the continued development of the Company’s stakeholder relations, social performance objectives and its Community and Social Responsibility (CSR) framework.
Sovereign has engaged SocialEssence to design and execute social performance activities during the Definitive Feasibility Study (DFS) phase. Founder, Mr Garth Lappeman, has over 16 years of on the ground social performance planning and implementation experience in accordance with IFC Performance Standards and World Bank Environmental, Health and Safety Guidelines. SocialEssence has been active in a number of countries working on projects in Angola, Botswana, Democratic Republic of Congo, Kenya, Kyrgyzstan, Liberia, Malawi, Mozambique, Namibia, Panama, Uganda, Sierra Leone, South Africa, Northern Sudan, Tanzania, Uzbekistan, and Zambia.
Most notably, in Zambia, SocialEssence’s Director was involved from early exploration through to steady state production of First Quantum Minerals Ltd’s (First Quantum Minerals) Trident operations, which includes the Sentinel Copper Mine which is of similar scale to Sovereign’s Kasiya project. Mr Lappeman was responsible for implementing and managing social and community initiatives for First Quantum Minerals as it established its large-scale commercial operations.
Managing Director and CEO, Mr Frank Eagar commented: “The SocialEssence exemplary track record and implementation experience aligns with our objectives of establishing long lasting and sustainable community relationships well ahead of project implementation. The conservation farming program implemented by SocialEssence’s leaders in Zambia has stood the test of time and has over 7,000 participating farmers. We will continue to build out our owner’s team and capabilities while we work through Kasiya’s optimisation with Rio Tinto.”
SocialEssence will:
· prepare Kasiya’s Social Impact Assessment and Management Plan for the DFS and permitting;
· design, implement and manage social performance activities including stakeholder engagement, development of key relationships;
· prove the feasibility of critical social performance measures (including early local content, and piloting of livelihood restoration programs, and piloting of rehabilitation activities to restore land for agricultural use); and
· align with the Company’s ESG Framework.
ENQUIRIES
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Frank Eagar (South Africa/Malawi) +61(8) 9322 6322 |
Sam Cordin (Perth) |
Sapan Ghai (London)
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