Blencowe Resources PLC (LSE:BRES) has received a formal Letter of Interest (LOI) from the US International Development Finance Corporation (DFC) stating the agency is willing to take part in the debt funding for the Orom-Cross graphite project in Uganda.
A US$5 million technical assistance grant (TAG) has already been made by the DFC to Blencowe for the project, but the LOI is the first step of an additional process to advance the project’s development.
Some US$2 million of the proposed TAG funding has already been received, Blencowe said, adding that during 2024 it will work closely with the DFC on mine development, which remains subject to the feasibility study (DFS) results and other due diligence.
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Cameron Pearce, Blencowe’s executive chairman, commented: "This Letter of Interest is an important next step in the process for DFC to consider project financing support to build Orom-Cross into a producing mine.
“Project funding will be crucial for the company this year as we work to conclude the DFS.
“This engagement with the DFC continues to underpin our long-term relationship with the DFC, as lead mandated partner, to assist in this exercise."
Pearce added that Blencowe will be meeting the DFC in the near term to evaluate the project implementation strategy.