Blencowe Resources said it has passed a key hurdle for engagement with US project development financial institution, the DFC, which can provide funding assistance for the Orom-Cross graphite development as part of the US critical minerals policy.
Orom-Cross, in Uganda, has successfully negotiated the key Project Screening test within DFC, said Blencowe, with both parties now moving to a binding grant agreement that could see 50% or US$4.5mln of grant funding made available for a Definitive Feasibility Study.
As part of the grant agreement, DFC will require a right of first refusal on debt finance for the full project implementation.
Cameron Pearce, executive chairman added: "This milestone represents a significant step forward in the development of Orom-Cross.
“We have now further de-risked the project by introducing a high-quality funding partner that will ultimately cover a substantial portion of the costs to complete the DFS.
“This same partner is a highly respected international financial institution that may also deliver a debt funding solution for the construction of the plant and associated infrastructure once we move into the implementation stage, which adds another dimension altogether.”