Blencowe Resources PLC (LSE:BRES), which is developing the Orom-Cross graphite project in Uganda, appointed leading graphite industry specialist, Lone Star Tech Minerals – USA, to assist with its sales and marketing strategy.
Lone Star will provide an analysis of concentrates, technical specifications, a review of the broader graphite market, the identification of products and opportunities, and help build key relationships with potential buyers in preparation for the start of mining operations.
Blencowe acquired Orom-Cross, a potential world-class project, in April 2020 and delivered a Preliminary Economic Assessment in October 2021.
The company recently announced an over-subscribed £2mln capital raise to fund a pre-feasibility study. The sales and marketing strategy will form an integral part of this study, which is due for completion around the middle of 2022.
"We are extremely fortunate to have a project of the calibre of Orom-Cross, which has the quality and characteristics to attract a partner such as Lone Star, to assist us ahead,” said Blencowe chairman Cameron Pearce.
“Lone Star has already identified that Orom-Cross has a unique blend of traditional graphite products that will likely sit well within the broader graphite market and we will now work closely together to build and then implement the strategy to ensure that we can successfully sell these products into that market.”
“Graphite is a non-replaceable, key component of the lithium-ion batteries that provide the energy to power electric vehicles (EVs), and as EV growth continues to expand exponentially over the next decade demand for graphite is forecast to increase fast in parallel.
“In addition, Orom-Cross has a good percentage of jumbo and large flake graphite that sell for considerable higher prices into speciality markets, thus providing a valuable mix of end products to achieve higher overall margins," he concluded.