Blencowe Resources (LON:BRES)  said it has passed “significant milestones” in the past few months as the group released a half-year report for the six month period to 31 March 2020.  
 
In particular, the mineral exploration and development company highlighted the acquisition of the Orom Graphite Project in Northern Uganda for £2 million in shares as a notable milestone.  
 
The company said it has thereby met its initial objective in identifying and acquiring an early stage natural resources project which it believes holds “tremendous growth potential.” 
 
The group added, however, that since the transaction was completed after the reporting date for these interim accounts, they therefore do not show the financial effect of the transaction. 
 
Pre-tax losses therefore widened to £482,000 for the period from £83,000 in 2019 as a result of administrative and other expenses. Cash as of 31 March was £88,249. 
 
Shares in Blencowe Resources opened flat at 8.25p on Tuesday morning. 

The group’s balance sheet as at 31 March showed net liabilities of £177,000 as a result of the expenditure incurred in connection with the transaction, this morning’s statement detailed. 
 
The group said the issue of shares for cash and to acquire the project restored it to a positive net asset position and that it is “well funded to meet the next stage of its development plans.” 
 
A 21-year Mining Licence was awarded in 2019, significantly de-risking any development at the Orom-Cross Graphite Project which is estimated to be in excess of 3 billion tonnes. 
 
Last week, Blencower identified a new high-grade zone which it said has the potential to lower operating costs as well as deliver additional economic benefits for the overall project.  
 
“Whilst the travel restrictions imposed as a result of COVID-19 have inhibited progress in recent weeks, this does not detract from the long-term economic attractiveness of the project,” the group added. 
 
Blencowe has now mobilised drill teams to site to recommence the test drilling program. 
 
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