GCIBlencowe invites retail investors to participate, as it raises more than £1.5m to complete DFS at Orom-Cross
Blencowe Resources () has raised £1.5 million via a placing of £1m worth of shares through Tavira, and a conditional subscription of £500,000 from management. The price is 4p per share. In addition, the company is raising £195,000 through a retail offer via BookBuild of shares, also at 4p.
The proceeds from the retail offer and the placing and subscription will support the completion of a 6,000 metre drilling programme and the advancement of the definitive feasibility study for the Orom-Cross graphite project in Uganda.
"We are pleased to offer retail investors the opportunity to participate in Blencowe's growth journey at an attractive 4p entry price,” said executive chairman Cameron Pearce.
In addition, it’s expected that the company will receive a further US$500,000 as part of a development grant from the DFC.
"We believe this support and overdue clarity on DFS financing will lead to a significant uplift in project value as we move through the final stages of the study,” added Pearce.
“Orom-Cross is strategically positioned to meet the growing demand for graphite in the energy transition, and completing the DFS will put Blencowe in an excellent position to deliver substantial long-term value for our shareholders."
View from Vox
This fundraising - and in particular the significant scale of it - removes a major hurdle that stood in the way of Blencowe’s progress. We’ll have to see what the DFS actually shows, but once it’s complete investors will be justified in hoping that further dilution will be kept to a minimum as project finance partners are brought in to take the strain.
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