Blencowe Resources PLC (LSE:BRES)’s announcement of an approach from a potential Chinese strategic partner is “a significant development”, said analysts at First Equity, which reiterated its ‘Buy’ rating.
Confirmation of Chinese interest shows its Orom-Cross project in Uganda is at a much more advanced stage and closer to commercialisation than previously thought, said the broker.
Additionally, it believes the current market valuation is “anchored in the past to that of an early development stage resources company”, which is “some distance from our own valuation and target price of 59p per share”.
Further news is expected from Blencowe on the project, with the “anticipation of a milestone monetisation event looking all the more realistic within the next 12-months”.
Earlier today, the mineral exploration company said it received an approach from a Chinese group which could potentially provide an offtake, funding and development scenario for its 100% owned Orom-Cross graphite project in Uganda.