Blencowe Receives Final US$250,000 US Grant Tranche to Advance Uganda Graphite Project
Blencowe Resources has received the final US$250,000 tranche of grant funding from the United States International Development Finance Corporation (DFC), completing a US$5 million technical assistance grant for its Orom-Cross graphite project in northern Uganda.
The London-listed company said the final payment followed completion of the project’s Definitive Feasibility Study (DFS) and the DFC’s technical review, marking an important milestone as it works to secure financing for the project’s first development phase.
The funding was non-dilutive, meaning it did not require the company to issue additional shares to raise capital.
Blencowe said the grant had supported extensive technical work, including drilling, resource and reserve assessments, feasibility studies and investigations into the potential applications of Orom-Cross graphite.
Project Economics Strengthened
The completed feasibility work has strengthened the project’s technical and economic foundation.
Blencowe reported a post-tax net present value of US$1.254 billion, calculated at a 10% discount rate, and an internal rate of return of 51%.
The company has also advanced research into downstream applications for its graphite, including battery materials, energy storage, aerospace and defence technologies.
Graphite is classified as a critical mineral by the United States because of its importance to battery manufacturing, energy storage and other strategic industrial applications.
Blencowe said the DFC’s continued support reinforced the project’s strategic relevance as the United States seeks to diversify critical mineral supply chains.
Focus Shifts to Phase One Financing
With the grant fully drawn, Blencowe’s immediate priority is to secure project-level financing for Phase One and advance the Orom-Cross project towards development.
The company is also pursuing commercial agreements with potential customers and offtake partners, alongside further work on its longer-term Phase Two funding structure.
The project is planned for phased development, initially targeting graphite concentrate and micronised products, with subsequent expansion intended to increase output and support downstream processing.
Blencowe said the technical work completed under the DFC programme had significantly advanced the project and reduced development risks.
However, moving into construction will depend on securing the necessary financing, finalising commercial arrangements and completing the remaining implementation work.
The completion of the US$5 million grant marks a significant funding milestone for Orom-Cross as Uganda seeks to develop its mineral resources and strengthen its participation in global critical minerals supply chains.
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