8th Apr 2025 14:28
(Alliance News) - Blencowe Resources PLC shares climbed on Tuesday after it announced the signing of an additional non-binding offtake agreement with Qingdao TaiDa Carbon Co Ltd.
Shares in Blencowe were trading 19% higher at 3.80 pence in London on Tuesday afternoon.
The London-based mineral explorer and developer said the deal with TaiDa, a Qingdao, China-based "graphite industry leader", was to supply an initial 5,000 tonnes per year of 96% graphite concentrate over three years from Blencowe's Orom-Cross project in Uganda.
The agreement covers 50% of the initial phase 1 production of 10,000 tonnes per annum expected from 2026, and comes with "potential extension and expansion thereafter".
"Our focus has been clear: secure offtake agreements that enable us to fully cover initial 10,000tpa Phase 1 production at Orom-Cross - and we're delivering," commented Executive Chair Cameron Pearce.
He continued: "Our phased approach is working and scaling production as determined by offtake contracts builds key relationships and lays the foundation for successful long-term growth.
"Today's announcement demonstrates the clear commercial demand for Orom-Cross and supports critical path items towards [definitive feasibility study] completion. Importantly, we continue to make strong technical progress and remain in active discussions with strategic partners...to finalise the broader project financing solution."
Blencowe said the companies will agree on pricing once a binding deal is in the works, with prices "expected to reflect premium markets." It also noted that supply to markets outside China "may attract a price premium for Orom-Cross concentrate sales."
"Following a successful US, UK and Asia marketing trip Blencowe continues positive discussions with several other potential offtake customers for the balance of its planned annual production," the company added.
Jangada Mines PLC, which holds an approximate 7% stake in Blencowe, was "pleased to note the announcement".
Jangada's stock was up 8.0% at 0.73 pence on Tuesday in London.
"This agreement with TaiDa is yet another offtake arrangement, further reinforcing the confidence in the world-class potential of the Orom-Cross graphite project," commented Jangada Executive Chair Brian McMaster. "It serves as a strong endorsement from an internationally recognised company, validating the project's exceptional value and future prospects."
He added: "With a large scalable resource, a defined development plan offtake for 10,000tpa phase 1 production and a 21-year mining licence in place, we believe the outlook for Blencowe is exceptionally bright."
By Emma Curzon, Alliance News reporter
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