Blencowe Resources has received a US$5 million grant from the US government-backed Development Finance Corporation (DFC) for a definitive feasibility study on the Orom-Cross graphite project in Uganda.
The funding is part of a President Biden-led strategic drive to secure reliable sources of critical metals for the US with this grant the first time the DFC has supported a pre-production graphite project, said Blencowe.
As part of the US$5 million, which is being made as a Technical Assistance Grant (TAG), the DFC has a right of first refusal on commercial terms to arrange project financing for the Orom-Cross project.
One million of the US$5 million is to be paid immediately, with the remainder as feasibility study milestones are passed.
Cameron Pearce, Blencowe’s executive chairman, commented: "This funding relationship with the DFC is a unique and game-changing event for Blencowe.
"To the best of our knowledge, there has been no other graphite project worldwide that has received a similar type of grant to date from the DFC.
"Blencowe presented an excellent US$482 million NPV for Orom-Cross within the Pre-Feasibility Study last year but we are now optimistic that we can deliver an even greater value NPV within the Definitive Feasibility Study."
Pearce added that graphite demand is rising fast and will continue to do so as it is one of the underrated but key components of the lithium-ion battery.
Orom-Cross contains an estimated 2-3 billion tonnes of graphite and is one of the largest, high-quality deposits worldwide