Blencowe Resources PLC (LSE:BRES) CEO Mike Ralston joined Proactive's Stephen Gunnion with an update on the company's Orem-Cross Graphite Project after the company 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 project.
Ralston told Proactive the project has evolved through various stages, including drilling, scoping studies, and a pre-feasibility study, which indicated an impressive net present value (NPV). Currently, it is in the definitive feasibility study stage. Ralston highlighted graphite's growing importance, especially in lithium-ion batteries, underscoring the high value of the project.
Ralston also elaborated on Blencowe's partnership with DFC. This collaboration began last year with a $5 million grant for feasibility study costs, of which $2 million has already been received. The DFC, committed to funding green projects, aligns with Blencowe's objectives, including critical minerals supply chain development. This partnership is crucial for Blencowe, as DFC will be the lead provider for funding the full project implementation.
Ralston also addressed the EV market and graphite's role in it. While noting a slowdown in the Chinese EV market, he remains optimistic about the overall growth in EVs and lithium-ion batteries. Ralston emphasized graphite's diverse applications beyond EVs and expressed confidence in the Orem-Cross project's potential, given its low capital and operating costs and high-quality product.