Blencowe Resources PLC (LSE:BRES) said Consolidated Africa Limited (CAL) has disposed of its entire 10.9% holding in the company.
CAL received 25mln shares following its sale to Blencowe of the Orom Cross graphite project in 2020, but has now sold these to new and existing shareholders said the statement.
Cameron Pearce, Blencowe’s executive chairman said: "We are pleased that the share register has been strengthened following these on market share purchases.
“We believe with a market cap of approximately £6.5mln, the company is significantly undervalued, as evidenced by our recent Preliminary Economic Assessment which yielded an NPV for Orom-Cross of US$317Mln.
“An updated resource statement on Orom-Cross is due to be released later this quarter, which we expect will further increase the size and grade of the resource.”
Blencowe added it had also appointed Tavira as its joint broker.
Shares jumped 13% to 4.45p.