Blencowe Resources Raises £1m Through Discounted Placing
Why we think this is bad
The £1m fundraise by Blencowe Resources at a 14.3% discount to the previous closing price is a concerning sign, indicating low investor appetite for the company's shares. The significant discount, potential dilution for existing shareholders, and ongoing financing risks outweigh the positive aspects of the fundraise, which is intended to complete the DFS and provide general working capital. This suggests the company may be facing challenges in securing funding for its Orom-Cross graphite project development.
Key Points
- Blencowe Resources raises £1m through discounted share placing
- Placing price of 3 pence per share represents a 14.3% discount to previous closing price
- Net proceeds to be used for completion of DFS and general working capital
- Company in discussions with strategic funding partners for project financing
Summary
Blencowe Resources Plc (LSE: BRES) has successfully raised £1m through the issue of 33,333,334 new ordinary shares at a placing price of 3 pence per share, representing a 14.3% discount to the previous closing price of 3.5 pence. The net proceeds will be used to complete the DFS for the Orom-Cross graphite project and provide general working capital. The company remains in discussions with strategic funding partners, including the DFC and AFC, as part of a broader project financing strategy.