Blencowe Resources has received a third tranche of funding worth US$1 million from US agency the International Development Finance Corporation (DFC).
This payment represents a further 20% of a US$5 million grant earmarked by DFC for the costs of a definitive feasibility study at Blencowe’s Orom-Cross graphite project in Uganda.
Blencowe has now received US$3 million out of US$5 million arranged under the agreement with the DFC.
This payment reflects a successful coating of SPG product, which Blencowe said is a crucial step towards product qualification.
A downstream processing facility in Uganda is now being looked at to upgrade the purity of the company's graphite from a 96% concentrate to 99.95% uncoated SPG.
Achieving that would increase the value of flake graphite produced from $600/tonne to around $2,500/tonne.
Cameron Pearce, Blencowe’s executive chairman commented: “Our DFS results underscore what an exceptional graphite project Orom-Cross is, including its size and scale, low operating costs, low capital start-up costs and high-quality purified end products which are building interest with key offtakers and end users.
"Blencowe is making significant strides with the feasibility study as evidenced in this latest disbursement from DFC.”