Blencowe Resources PLC (LSE:BRES) announced it has raised £290,000 with a placing of shares, priced at 4p each.
Arranged by Tavira Financial Limited, and subscribed by two existing investors, including its largest shareholder RAB Capital, it provides an injection of capital.
The funds, alongside existing cash resources, will settle a legacy Ugandan capital gains tax liability of £342,751 (which arose from Blencowe’s 2019 acquisition of Consolidated African Resources Uganda).
"It is very pleasing to see continued support from our shareholders, particularly RAB Capital, in this small capital raise, which addresses a long-standing legacy tax matter that we inherited from the acquisition in 2019,” said executive chair Cameron Pearce.
“We now have a clean balance sheet and have removed a hurdle with respect to project financing discussions.”
Pearce told investors that Blencowe may now fully focus on advancing value-accretive workstreams, with programmes like the recently completed drilling that exceeded expectations, and more detailed results are slated to follow.
“We look forward to releasing the first in a series of assay results shortly. These will feed into what we anticipate will be a material JORC upgrade,” Pearce said.
“With potential further offtake developments, strategic alliances and the publication of the Definitive Feasibility Study this year, we are in a strong position to continue building momentum towards the development of Orom-Cross into production."