Business
Proposed Acquisition Of Orom Graphite Project
Proposed Acquisition Of Orom Graphite Project.
About this update from Blencowe Resources Plc
[{"type":"text","content":"\n \nRNS Number : 7870Y Blencowe Resources PLC 13 May 2019 \n\n13 May 2019\nBlencowe Resources Plc\n \n(\"Blencowe\" or the \"Company\")\n \nProposed Acquisition of Orom Graphite Project \n \nHighlights\n· Acquisition of the Orom Graphite Project in Uganda\n· Consideration of £2m to be satisfied by the issue of 33,333,333 new shares at an implied price of 6p\n \nBlencowe Resources Plc (LSE:BRES), the natural resources sector focused special purpose acquisition company, is pleased to announce that it has entered into Heads of Agreement with Consolidated Africa Limited (\"CRA\") and New Energy Minerals Africa Pty Ltd (\"New Energy\") for the proposed assignment to the Company of a binding option for it to acquire 100% of the share capital of Consolidated African Resources (Uganda) Ltd (\"CARU\"), a subsidiary of CRA, by way of a reverse takeover (\"Transaction\"). CRA has given its binding consent to the assignment of the option. \n \nCARU is a Ugandan registered company which is the owner of the Orom Graphite Project in northern Uganda (the \"Orom Graphite Project\").\n \nBlencowe will, subject to due diligence, exercise the option to acquire the entire share capital of CARU with the total aggregate consideration payable by the Company being £2,000,000 (two million pounds), to be satisfied in full by the issue of 33,333,333 new ordinary shares of the Company at an implied price of £0.06 per share, of which £500,000 will be payable to New Energy as consideration for the assignment of the option and £1,500,000 will be payable to CRA as the acquisition price for CARU. Completion of the Transaction will be conditional on Blencowe raising working capital for the enlarged group to further develop the Orom Graphite Project. As a budget and work programme for the Orom Graphite Project has not yet been agreed, the quantum of any such fundraise is at the date of this announcement undetermined.\n \nWhilst the principal terms of the Transaction have been agreed, the acquisition remains subject to due diligence, completion of the acquisition documentation, completion of the fundraising and re-listing of the enlarged group on the London Stock Exchange. Accordingly, there is no certainty that it will be completed.\n \nIf the Transaction is c...