Mike Ralston of Blencowe Resources explains how the £2m raised will be used to develop their graphite project

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Mike Ralston CEO of Blencowe Resources #BRES explains how the £2m raised will be used to further development the Company's flagship Orom-Cross graphite project in Uganda including an updated JORC Resource and delivery of a PFS.

Highlights

Ø Over-Subscribed £2m fund-raise, including subscriptions from Blencowe Board

Ø Orom-Cross now fully funded through to completion of PFS 

Ø Outlook for graphite market continues to strengthen, driven by EV sector 

Blencowe Resources (LSE: BRES) (Blencowe or the Company) is pleased to announce the successful completion of an over-subscribed capital raise for £2 million at 5p through the issue of 40,000,000 new ordinary shares ("Fundraise"). This includes a subscription of £75,000 from the Directors and CEO. The Fundraise is subject to a simplified prospectus that is currently being approved by the FCA ahead of the seeking of shareholder approval at a general meeting to be arranged. The Company anticipates that admission of the new ordinary shares will be in approximately 21 days.  

Use of Funds

These funds will be used for the further development of the Company's flagship Orom-Cross graphite project in Uganda, including:

·    an updated JORC Resource early next quarter; and

·    Delivery of a Pre-Feasibility Study ("PFS") by mid-2022. 

Blencowe announced results of the Preliminary Economic Assessment ("PEA") for Orom-Cross in September 2021, which highlighted a long-life, low-cost graphite project that delivers significant operating margin per tonne; the resultant NPV (US$317 million) and IRR (49%) are considered exceptional and as such the Company has moved into PFS stage. The Company will further refine the project economics in the PFS and continue to use these studies to engage with strategic and industrial parties that are seeking graphite product. 

Background

Orom-Cross is a potential world class graphite project both by size and end-product quality, with a high component of more valuable larger 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 into the studies phase shortly as it drives towards first production.

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.