Blencowe Resources, a UK-based mining company, has entered into an agreement with the US International Development Finance Corporation (DFC) to secure $5 million in funding.
This financial support, provided through a technical assistant grant, will be allocated to the definitive feasibility study (DFS) program for the Orom-Cross project in Uganda.
The funding arrangement includes an initial payment of $1 million, constituting 20% of the total grant, with the remaining disbursements contingent on the achievement of specific feasibility milestones.
The DFC’s involvement is aligned with the US government’s strategic objective of establishing a robust supply chain for critical minerals and metals, as part of its broader $1 trillion Biden-renewables strategy.
As part of the partnership, the DFC retains the right of first refusal for arranging project financing for the Orom-Cross initiative.
This collaboration provides Blencowe with the potential to explore a more extensive project scope, potentially yielding higher returns and significantly enhancing the overall project’s value.
Cameron Pearce, the executive chairperson of Blencowe Resources, highlighted the significance of this partnership with the DFC in mitigating risks associated with the Orom-Cross project.
Pearce stated that receiving such a grant from the DFC is a unique achievement in the global graphite sector, emphasizing the considerable de-risking and value enhancement it brings to the project.
The Orom-Cross project boasts an estimated graphite reserve of two to three billion tonnes, making it one of the world’s largest high-quality deposits.
With the backing of the DFC, Blencowe is better positioned to tackle one of the primary challenges in mining operations: securing funding for project development.
This collaboration provides the company with confidence and support to advance the Orom-Cross project towards production.
Graphite’s demand continues to grow, particularly as a critical component of lithium-ion batteries used in various applications, including electric vehicles and energy storage.
Blencowe aims to leverage this partnership to establish itself as a leading player in the global graphite market, poised to meet the rising demand for this essential mineral in green technology.
