Blencowe Resources PLC (LSE:BRES) has raised approximately £ 1.9 million for 5p through a combination of a fundraise and suppliers taking payment in shares.
Net proceeds will be used for the Definitive Feasibility Study (DFS) for the Orom-Cross graphite project in Uganda alongside grant funding from the US Government's Development Finance Corporation (DFC), said Blencowe.
Around £1.29 million will come from partners and contractors taking equity, £459,000 from an equity placing arranged by Tavira Financial and a direct subscription of £159,000.
Blencowe added it means it is £1.29 million less cash that the company must raise towards completion of the DFS.
Cameron Pearce, Blencowe’s chairman, commented: "The company is pleased to have completed a fundraising that supplements our working capital alongside the recent grant funding received from the DFC.
“Also, we are delighted that our key project partners are joining the register, and we believe their alignment with our shareholders is a strong endorsement of the considerable and differentiated project value we are building within the DFS and from Orom-Cross generally."