Blencowe Resources PLC (LSE:BRES) told investors it has received the second tranche of US$1 million from the US$5 million granted by the US International Development Finance Corporation (DFC).
This funding is designated for the Orom-Cross project in Uganda, specifically to cover costs in delivering a definitive feasibility study (DFS).
Today, Blencowe highlighted that it has successfully completed several key milestones in the DFS, including studies on tailings processing, Spheronised Purified Graphite (SPG) test work, and the finalisation of the processing plant flowsheet.
Significantly, the results of the testing work have indicated that Orom-Cross graphite can achieve a purity level of 99.995% - which would put this graphite among the top bracket globally, and in turn positively impact product pricing and offtake relationships.
Some 600 tonnes of bulk sample have to date been prepared for export to China for commercial testing.
Efforts now continue to progress the DFS report, and Blencowe in due course expects to unlock further tranches of funding from the DFC grant.
"Following successful completion of key feasibility study milestones this latest tranche of grant funding we have received from DFC is valuable to Blencowe and we extend our sincere appreciation to the DFC for their ongoing support,” Blencowe executive chair Cameron Pearce said in a statement.
“The DFC remains a critical strategic partner of Blencowe with discussions underway as to potential funding support from the DFC for the full Orom-Cross graphite project implementation ahead.”
Meanwhile, the company noted that the project has also garnered interest from various high-quality offtake groups and strategic parties.