Business
Over-Subscribed £2m Capital Raise
Over-Subscribed £2m Capital Raise.
About this update from Blencowe Resources Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2239S\n Blencowe Resources PLC\n 12 November 2021\n \n \n \n \n Date: 12 November 2021\n \n \n Blencowe Resources Plc\n \n \n (\"Blencowe\" or the \"Company\")\n \n \n \n \n \n \n \n \n \n Over-Subscribed \n \n \n £\n \n \n 2m Capital Raise\n \n \n \n Company now fully funded through next 12 months of Project development, including Pre-Feasibility Study\n \n \n Highlights; \n \n \n Ø \n \n Over-Subscribed £2m fund-raise, including subscriptions from Blencowe Board\n \n \n \n Ø \n \n Orom-Cross now fully funded through to completion of PFS \n \n \n \n Ø \n \n Outlook for graphite market continues to strengthen, driven by EV sector \n \n \n \n \n \n \n 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. \n \n \n \n \n \n Use of Funds\n \n \n These funds will be used for the further development of the Company's flagship Orom-Cross graphite project in Uganda, including:\n \n \n \n \n \n · \n an updated JORC Resource early next quarter; and\n \n \n · \n Delivery of a Pre-Feasibility Study (\"PFS\") by mid-2022. \n \n \n \n \n \n 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. \n \n \n \n \n \n \n Terms of the Fundraise\n \n \n The capital raise was managed by the Company's brokers First Equity and Brandon Hill Capital and was completed at 5p per new ordinary share with...