Business
Placing to Raise £635,000
Placing to Raise £635,000.
About this update from Blencowe Resources Plc
[{"type":"text","content":"\n\nDate: 18 May 2023 \nBlencowe Resources Plc\n(\"Blencowe\" or the \"Company\")\n \nPlacing to Raise £635,000\n \nBlencowe Resources Plc (\"Blencowe Resources\" or the \"Company\") (LSE: BRES), the natural resources company focussed on the development of the Orom-Cross Graphite Project in Uganda, is pleased to announce that it has raised £635,000 at 5 pence per share (\"Placing\") through the issue of 12,700,000 new ordinary shares of 0.5p (\"Placing Shares\"). The Company will issue investors in the Placing with 1 warrant per 2 Placing Shares (Investor Warrants\") which are exercisable at 8p for a period of 3 years from Admission of the Placing Shares. \nUse of Funds\nThe net proceeds of the Placing will be used to maintain momentum on the Definitive Feasibility Study (\"DFS\") work, which has been underway since start of 2023, and is managed by leading firm CPC Engineering.\nThe Company recently announced it had passed the key screening hurdles by the Development Finance Corporation (\"DFC\") regarding a US$4.5M Technical Assistance Grant (\"TAG\") to fund 50% of the DFS. The Company expects to complete the process of obtaining the TAG with DFC over the coming weeks and then be able to draw down funds for the DFS work. The net proceeds allows the Company to avoid any immediate delay to the DFS programme whilst the DFC grant is being finalised.\nIn parallel, the Company awaits results from its metallurgical testing programs in both China and the United States of America. In January 2023 the Company delivered 20kgs of concentrate to technical experts in Wuhan University of Technology in China and 5kgs to American Energy Technologies Co. for SPG and expandables testing. A further 100 tonnes bulk sample has been extracted and is in transit to Jilin Huiyang New Material Technology Company, with results expected to reconfirm historic results of IMO testing in Perth, which demonstrated concentrates from Orom-Cross is of consistently high quality. The net proceeds will enable the Company to accelerate these discussions.\nRelated Party Transaction\nRAB Capital...