Blencowe Resources PLC (LSE:BRES) has signed a Memorandum of Understanding (MOU) over a battery-grade graphite production facility in Uganda with Singapore group Triessence and an unnamed Asia-based SPG and Anode material producer (SPG Partner).
The MoU is the first step towards a joint venture for a graphite beneficiation facility in the country producing 99.95% purified graphite for lithium-ion batteries, according to a Blencowe statement.
A facility near Blencowe’s Orom-Cross graphite project, designed to upgrade 96% graphite concentrate to high-value, battery-ready 99.95% uncoated SPG, will also significantly enhance commercial returns compared to selling concentrate, the company added.
Blencowe and Triessence will hold 50% of the JV with the SPG Partner providing operational expertise. Blencowe’s 100% ownership of Orom-Cross is unaffected.
Triessence will fund 50% of capital costs for the facility and purchase all end products to ensure "consistent revenue and premium pricing for some of the first 99.95% SPG produced ex-China".
SPG products will also ultimately be sold to OEMs outside China via Triessence.
Blencowe added that a Definitive Feasibility Study (DFS) for the SPG facility will be integrated with Orom-Cross DFS for a comprehensive development strategy.
Cameron Pearce, executive chairman, commented: “Blencowe has long recognised the substantial advantages downstream upgrading of graphite in-country can offer and securing experienced partners who have the expertise to help us deliver successful SPG production was essential.
"I am delighted to say that this MOU is another significant milestone in enhancing both the value and distinctiveness for our company."
"Our JV team will now focus on the SPG facility feasibility study and integrating it with the Orom-Cross DFS, providing a comprehensive solution that adds considerable value.
“We anticipate minimal additional costs for this study as we are utilising our partners' existing vast experience for all costings and design work, and no further bulk sample testing or further resource drilling is needed."