Jangada Mines PLC Strategic Investment (0933E)
26 Ottobre 2022 - 8:00AM
UK Regulatory
TIDMJAN
RNS Number : 0933E
Jangada Mines PLC
26 October 2022
Jangada Mines plc / EPIC: JAN.L / Market: AIM / Sector:
Mining
26 October 2022
Jangada Mines plc ('Jangada' or 'the Company')
Strategic Investment
Jangada Mines plc is pleased to advise it has increased its
shareholding in London-listed Blencowe Resources PLC (LON:BRES)
("Blencowe") by 15,250,000 ordinary shares through an investment of
GBP610,000 (the "Subscription") into Blencowe. The Subscription was
made as part of a broader GBP750,000 placing by Blencowe at a price
of 4p per ordinary share with an attaching half warrant per
ordinary share with an exercise price of 8p and a 3-year life (the
"Transaction").
Following the closing of the Transaction, the Company will have
a holding of 18,750,000 ordinary shares in Blencowe, representing
approximately 9.5% of Blencowe's enlarged outstanding issued share
capital.
About Blencowe Resources
Blencowe's principal asset is the 100% owned Orom-Cross graphite
project in Uganda (the "Project"). The Project has established a
JORC resource of 24.5Mt @ 6.0% TCG based on drilling undertaken on
less than 5% of the Project area, part of which already benefits
from a 21-year mining licence. On 19 July 2022, the company
released a Pre-Feasibility Study ("PFS") on the Project, which
provided a Net Present Value of US$482m, based on the existing
14-year mine life. The PFS also outlined capex to first production
of US$62m, average EBITDA of US$100m per annum and a return of
US$1.1bn in free cash over the 14-year life. Blencowe recently
confirmed it has received an approach from a potential strategic
partner in China and will look to deliver bulk samples for further
testing ahead of potentially entering into an agreement that could
provide the funding solution for Orom-Cross. Work on a Definitive
Feasibility Study is currently underway.
For the year ended 30 September 2021, Blencowe reported nil
revenue and a loss before tax of GBP694,726. As at 31 March 2022,
Blencowe reported gross assets of GBP7,032,220.
For more information on Blencowe, please visit its website,
which contains the corporate presentation and recent RNS outlining
the development strategy of the Project:
https://blencoweresourcesplc.com/
Brian McMaster, Executive Chairman of Jangada, commented: "I am
pleased to have increased Jangada's ownership in Blencowe Resources
to 9.5% through this GBP610,000 investment. The purchase price of
4p per ordinary share values Blencowe at GBP7.1m, or approximately
US$8m, prior to its capital raise. This valuation is some 60 times
lower than the Net Present Value valuation of US$482M ascribed to
Blencowe's Orom-Cross graphite project by the independent third
party PFS released earlier this year. I believe the purchase has
the potential to be a highly accretive investment for Jangada and
its shareholders.
"The demand for graphite is expected to see a dramatic uptick
over the coming years with significant supply deficits forecast
from 2025 onwards, as the roll out of electric vehicles accelerates
and a number of the planned 300 battery megafactories come online.
To date, graphite is yet to witness the price movements of other
battery metals such as lithium and nickel, despite being the
largest component within the anode of lithium-ion batteries.
Accordingly, we see further upside potential to the already very
attractive margins at Orom-Cross.
"Given the not unsubstantial cash resources currently held by
Jangada following the disposal of the Pedra Branca asset to ValOre,
we believe now is the ideal time to increase Jangada's exposure to
Blencowe, and graphite, as part of our broader focus on battery
metals, which includes our vanadium assets in Brazil."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 (withdrawal). Upon the
publication of this announcement, this inside information is now
considered to be in the public domain.
**ENDS**
For further information please visit www.jangadamines.com or
contact:
Jangada Mines plc Brian McMaster (Chairman) Tel: +44 (0)20 7317 6629
Strand Hanson Limited Ritchie Balmer Tel: +44 (0)20 7409 3494
(Nominated & Financial James Spinney
Adviser)
Tavira Securities Jonathan Evans Tel: +44 (0)20 7100 5100
Limited
(Broker)
St Brides Partners Ana Ribeiro jangada@stbridespartners.co.uk
Ltd Isabel de Salis
(Financial PR)
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