Blencowe Resources signs MOU with Apollo Energy

LONDON - Jangada Mines plc (AIM:JAN.L), a natural resources company with interests in Brazil and other locations, has reported on the recent developments of its investee company, Blencowe Resources PLC (LSE:BRES), in which it holds approximately a 7% interest.

Blencowe Resources has announced the signing of a non-binding Memorandum of Understanding (MOU) with Apollo Energy Systems Inc., a Florida-based company specializing in advanced lead acid battery storage systems. The MOU concerns the offtake of purified graphite from Blencowe’s Orom-Cross Graphite Project in Uganda.

The initial agreement outlines the supply of 250 tonnes per annum of purified small flake graphite to Apollo, with final pricing to be determined within 24 months. The high-margin product is expected to sell at around US$8,000 per tonne, indicating a significant profitability margin over typical concentrate sales.

Apollo has successfully tested the Orom-Cross graphite products and will proceed with further product qualification and due diligence. This MOU is part of Blencowe’s strategy to diversify its international buyer base as it moves towards production.

The Orom-Cross Graphite Project has been recognized for its potential by the African Finance Corporation, which expressed interest in participating in both debt and project level funding. The recent MOU with Apollo further validates the quality of Orom-Cross graphite and supports ongoing strategic financing discussions with key institutions.

Blencowe’s Executive Chairman, Cameron Pearce, expressed optimism following the company’s successful marketing tour in the USA, anticipating more agreements to be finalized shortly. The MOU with Apollo follows a previous agreement with Jilin to supply up to 15,000 tonnes per annum of large flake concentrate, announced in 2024.

The company is also in discussions with multiple US-based OEMs and leading graphite buyers for both large and small flake products. Blencowe aims to secure MOUs with leading buyers for its full production output, thereby strengthening its commercial strategy as it approaches first production.

Pearce highlighted Blencowe’s rapid progress in pre-qualifying smaller flake graphite products, a process that typically takes 2-3 years, and emphasized the unique qualities of the Orom-Cross project, including scale, low capital and operating costs, and high-purity end products.

This news is based on a press release statement from Jangada Mines plc.

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