Blencowe Resources raises funds to advance Orom-Cross
(BRES ) has raised £0.5m in an oversubscribed placing at a price of 8p per share to advance the company’s Orom-Cross Graphite Project in Uganda.
The London-listed natural resources company said the funds will be used to advance the development of Orom-Cross, including the project’s Pre-Feasibility Study which is due to commence following confirmation of the JORC Resource in the current quarter.
Orom-Cross is considered ‘a potential world class graphite project’ both by size and end-product quality, with a high component of larger flakes identified from previous work.
The project was issued a 21-year Mining Licence by the Ugandan Government in 2019.
BRES also announced that it has appointed First Equity as joint broker to the Company with immediate effect to work alongside the Company's existing broker Brandon Hill Capital.
Executive Chairman of Blencowe Resources, Cameron Pearce, stated that the company’s support from First Equity “underlines the growing realisation that there is a paradigm shift occurring worldwide in the battery metals market.”
Pearce said this interest occurs at a time when investors are starting to consider “how important all the key products that make up a lithium-ion battery will become into the future as electric vehicles and other renewables sales begin to grow exponentially.”
He added, “Blencowe Resources currently holds one of the largest graphite deposits in the world and approximately 50% of the weight of each and every Li-ion battery is graphite."
Today’s news is further evidence the Company can raise funds to further its flagship Graphite project, whilst investors patiently wait for the Company’s phase two metallurgical results and Maiden JORC Resource, both expected in 1Q21. Shares in Blencowe Resources have increased by over 25% since the beginning of November 2020 to open 1.25% higher this morning at 8.125p.
Reasons to Follow BRES
Blencowe is a mineral resources company focused on fast-tracking its 100% owned Orom Cross Jumbo Graphite Project in Uganda to production. Orom Cross is an advanced exploration stage project which was awarded a 21-year mining licence in October 2019.
The development company which is currently focused on bringing the Orom-Cross graphite project into production, completed its 69-hole (1,950m) diamond drill programme into the Eastern Limb Lode and the High-Grade Camp Lode in September 2020.
The size and scale from exploration work that has already been completed in the licence area has clearly demonstrated that Orom Cross has the potential ‘to become one of the largest graphite projects in the world based on both size and the quality of the end product.’
Blencowe is fast tracking the project through to defining a maiden JORC-compliant resource, completing further metallurgical test work with a plan to deliver a Preliminary Economic Assessment (PEA) in Q1 2021 followed shortly after by a Pre- Feasibility Study (PFS).
Align Research describes Graphite as ‘an important battery metal’ since it represents around 50% of Li-ion batteries by mass, which uses the smaller sized flakes. In recent years there have been some racy growth rates suggested for graphite demand for lithium ion batteries.
Meanwhile, the group said demand for electric vehicles (EV) is rising on the back of green legislation being adopted by the UK, India, Germany, France, Norway and China, which is expected to lead to an increasing demand for Li-ion batteries and in turn for graphite.
Another integral factor is that Uganda’s economy is believed to hold ‘great potential’ with this whole region of East Africa viewed as a key African growth platform by the World Bank, hosting significant natural resources including copper, cobalt, gold, nickel and platinum.
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