Blencowe Resources PLC (LSE:BRES) has received its first $1 million mobilisation tranche payment from the US government-backed Development Finance Corporation.
The tranche represents 20% of the full $5 million DFC grant for a definitive feasibility study on the Orom-Cross graphite project in Uganda.
DFC is now the lead-mandated partner to deliver a full funding solution for Orom-Cross production, assuming the completion of a successful DFS.
Orom-Cross is one of the largest graphite projects worldwide by size and scale of deposit and a 21-year mining licence has already been awarded.
Blencowe took the project through a successful pre-feasibility study in 2022 and is now embarking on the definitive feasibility study as it drives towards a decision to mine.
Metallurgical test results by leading graphite industry experts in South Africa, Canada, Australia, and China confirmed a high-grade, low-impurity concentrate can be produced with Orom-Cross material.
Executive chairman Cameron Pearce said the grant was “of significance firstly because it is completely undilutive funding for Blencowe and its shareholders, and secondly, because it solidifies the critical strategic relationship that has been developed between our company and the DFC”.
The grant agreement does not require Blencowe to match funds input by the DFC.
“We are already well advanced in our achievement of the next milestone which would access and release another $1 million payment from DFC,” said Pearce.