Blencowe Resources is excited to announce new funding agreements with key project partners, as part of a broader capital raise totaling approximately £1.9 million. This pricing represents a slight premium over the 4.8p closing share price on July 19, 2024. The funds raised will be used to advance the Definitive Feasibility Study (DFS) for the Orom-Cross graphite project in Uganda. Additionally, the company will continue to benefit from grant funding provided by the US Government’s Development Finance Corporation (DFC), further supporting project development.

The Orom-Cross Graphite Project is positioned as a potential world-class graphite asset due to its significant size and high-quality end-product, featuring a notable proportion of valuable larger coarse flakes. In 2019, the Ugandan Government granted a 21-year Mining Licence for the project after extensive historical exploration. Blencowe Resources has earlier completed a Pre-Feasibility Study and is currently progressing through the Definitive Feasibility Study phase, aiming in the direction of starting production. This project is poised to become a major player in the graphite market, leveraging its premium deposit quality and strategic development progress.

This fundraising round underscores robust validation of the Orom-Cross graphite project’s value, evidenced by equity investments from key project partners at a premium to the most recent share price. This capital raise reduces the Company’s cash requirements for completing the Definitive Feasibility Study (DFS) by £1.286 million. Blencowe Resources has previously indicated a preference for securing capital from long-term investors to finalize the DFS, avoiding deeply discounted raises in the retail market. This approach not only demonstrates confidence in the project's prospects but also aligns with the Company’s strategy of attracting committed, strategic investment partners.

The £1.9 million funding is structured as follows: £1,286,062 is secured through agreements with key project partners, issuing 25,721,250 new ordinary shares at 5p per share to cover DFS costs. This includes US$1 million from ADT (Ugandan drilling partners), US$200,000 from Oriental Jinyuan (Asian graphite marketing partner), US$150,000 from American Energy Technology Company (battery technology partner), US$90,000 from Minrom (technical resource partner), and £250,000 from other suppliers for future costs. An additional £459,639 is raised through a placing of 9,191,520 new ordinary shares at 5p, arranged by Tavira Financial Limited, and £159,063 through direct subscription for 3,181,260 new shares at the same price.

Cameron Pearce, Chairman of Blencowe Resources, expressed satisfaction with the successful completion of a fundraise, which complements the recent grant funding from the DFC. He also highlighted the significance of having key project partners on board, viewing their involvement as a strong endorsement of the project's substantial and unique value. Pearce believes that their alignment with shareholders further validates the potential and value being created in the DFS (Definitive Feasibility Study) and the Orom-Cross project overall.