TIDMBRES
RNS Number : 6247P
Blencowe Resources PLC
10 October 2023
Date: 10 October 2023
Blencowe Resources Plc
("Blencowe" or the "Company")
Blencowe receives first US$1 Million Grant funding from
Development Finance Corporation for Orom-Cross Graphite Project
Initial 20% Mobilisation tranche paid to Blencowe for Project
Feasibility Costs
Blencowe Resources Plc ("Blencowe" or the "Company") (LSE: BRES)
is pleased to announce it has received its first US$1 million
mobilisation tranche payment from the Development Finance
Corporation ("DFC"). This represents 20% of the full US$5 million
DFC grant for Definitive Feasibility Study ("DFS") costs, recently
completed and announced by Blencowe.
Blencowe announced on 22 September that the Company had secured
a US$5 million grant from tier one funding provider DFC to cover a
substantial part of the DFS costs for the Orom-Cross Project.
Furthermore, DFC is now the lead mandated partner to deliver a full
funding solution for Orom-Cross production, assuming completion of
a successful DFS.
Blencowe is confident that this unique strategic relationship
will now open doors to unlock additional value at Orom-Cross by
expanding the project in ways previously considered not possible
due to capital constraints.
Orom-Cross is one of the largest graphite projects worldwide by
size and scale of deposit and a 21 year Mining License has already
been awarded. Blencowe took the project through a successful
Pre-Feasibility Study in 2022 and is now embarked on the Definitive
Feasibility Study as it drives towards decision to mine.
Metallurgical test results by leading graphite industry experts in
South Africa, Canada, Australia and China have all underlined
Orom-Cross graphite as upgrading to one of the cleanest, purest
high grade concentrates of any graphite project, with an excellent
mix of both coarse and smaller flakes. This has recently been
confirmed again on a commercial scale within the 100 tonne bulk
sample test programme conducted at one of the leading graphite
producer's facility in China.
Cameron Pearce, Executive Chairman commented;
"This first US$1 million received is of significance firstly
because it is completely undilutive funding for Blencowe and its
shareholders, and secondly because it solidifies the critical
strategic relationship that has been developed between our Company
and the DFC. I would like to emphasise once again that the Grant
Agreement with DFC does not require Blencowe to match funds input
by them. Their US$5 million funding is provided via this initial
mobilisation tranche and thereafter by further tranches that are
paid upon Blencowe achieving as-agreed milestones, which are all
key deliverables within the DFS program. We are already well
advanced in our achievement of the next milestone which would
access and release another US$1 million payment from DFC."
Mr Pearce added "The DFC Grant Agreement also has no pre-set
marketing restrictions and we remain committed to achieving the
best offtake partnerships for our products wherever they may be.
Our bulk sample pre-qualification process is well underway and we
have considerable offtake interest from recent marketing in China.
We look forward to the completion of critical SPG testing in USA to
prove that Orom-Cross can ultimately produce an efficient 99.95%
uncoated battery-ready product for the anode market which will then
lead to further OEM SPG testing as part of our DFS."
For further information please contact:
Blencowe Resources Plc www.blencoweresourcesplc.com
Sam Quinn Tel: +44 (0)1624 681 250
info@blencoweresourcesplc.com
Investor Relations Tel: +44 (0) 7891 677 441
Sasha Sethi sasha@flowcomms.com
Tavira Financial Tel: +44 (0)20 3192 1733
Jonathan Evans jonathan.evans@tavira.group
First Equity Limited Tel: +44(0)20 7330 1833
Jason Robertson jasonrobertson@firstequitylimited.com
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite Project
Orom-Cross is a potential world class graphite project both by
size and end-product quality, with a high component of more
valuable larger coarse flakes within the deposit.
A 21-year Mining Licence for the project was issued by the
Ugandan Government in 2019 following extensive historical work on
the deposit. Blencowe completed a successful Pre-Feasibility Study
on the Project in July 2022 and is now within the Definitive
Feasibility Study phase as it drives towards first production.
Orom-Cross presents as a large, shallow open-pitable deposit,
with an initial JORC Indicated & Inferred Mineral Resource of
24.5Mt @ 6.0% TGC (Total Graphite Content). This Resource has been
defined from only 2% of the total tenement area which presents
considerable upside potential ahead. Development of the resource is
expected to benefit from a low strip ratio and free dig operations
together with abundant inexpensive hydro-electric power off the
national grid, thereby ensuring low operating costs. With all major
infrastructure available at or near to site the capital costs will
also be relatively low in comparison to most graphite peers.
Development Finance Corporation (DFC)
The DFC is the primary US Government finance institution set up
to provide financially sound funding solutions for private-sector
initiatives pertaining to critical challenges facing the world, in
this case the drive towards increased sustainability across the
planet. It is an agency of the United States federal government and
represents US interests.
DFC's lending capacity is used to provide loans, guarantees,
equity investments and political-risk insurance for private-sector
led development projects, feasibility studies and technical
assistance. DFC invests across several sectors with stated goals of
empowerment, innovation, investment into Africa, green energy and
climate change.
Orom-Cross is directly linked with several of these goals. This
project may ultimately become one of the largest graphite producing
operations in the world over a very long mine life, delivering an
end-product in a sustainable manner which is a non-replaceable
input component to lithium-ion batteries. Demand for graphite is
accelerating at a rate where it is doubling every few years, and is
expected to continue growing exponentially into the future.
Graphite is therefore high on the US Government critical metals and
minerals list and assisting to open up long term supply chain of
graphite is a key strategy.
Orom-Cross will also deliver a 'green' graphite product through
a variety of production initiatives, including the use of
hydro-electric power for all mining and processing energy
requirements. Orom-Cross aims to become one of the leading
sustainable mining projects worldwide and this is a very important
component of the DFC charter and critical within a rapidly changing
landscape where every participant along the EV supply chain will be
audited on their sustainability credentials by OEMs.
Orom-Cross's potential ability to aid in the further development
of the Ugandan economy, empowering its population and driving
investment and future development has also proved attractive to the
DFC.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCUROBROUURARA
(END) Dow Jones Newswires
October 10, 2023 07:16 ET (11:16 GMT)
Blencowe Resources (LSE:BRES)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Blencowe Resources (LSE:BRES)
Historical Stock Chart
Von Mai 2023 bis Mai 2024