Date: 29 January 2024
Blencowe Resources
Plc
("Blencowe" or the "Company")
US International Development
Finance Corporation provides Letter of Interest for Orom-Cross
project financing
DFC lead mandated partner for Orom-Cross
project funding
Blencowe Resources Plc (LSE: BRES) is pleased
to announce it has received a formal Letter of Interest ("LOI")
from the US International Development Finance Corporation ("DFC")
in which the DFC has indicated its willingness to participate in
debt funding for the Orom-Cross graphite project ("Orom-Cross or
the "Project") in Uganda, subject to all necessary due
diligence. This comes following recent discussions with DFC
project funding division and follows the 2023 agreement with the
DFC's technical assistance division, who have already entered into
a US$5 million Technical Assistance Grant ("TAG").
To date US$2 million of grant funds have been
received from the DFC under the TAG, with the balance expected
during the course of 2024 as certain milestones are met. The TAG
also provided for the DFC to have the right to be
mandated to directly provide (and/or arrange for) financing or
investment for the Project on commercial terms.
This LOI is the first step of engagement with
the DFC project funding division to advance the project financing
process. During the course of 2024 Blencowe will work closely
with the DFC to reach a decision to mine subject to the DFS results
and other due diligence. Graphite is high on the US
Government critical metals and minerals list and their strategy is
to open up long term supply chains of graphite. Demand for
graphite is accelerating fast and is expected to continue growing
into the future due mainly to its non-replaceable role within the
lithium-ion battery that stores energy.
The Company is seeking to position Orom-Cross
to 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 is being audited on their
sustainability credentials by Original Equipment Manufacturers
(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.
Cameron Pearce, Executive Chairman
commented;
"This Letter of Interest is an important next-step in the
process for DFC to consider project financing support to build
Orom-Cross into a producing mine. Project funding will be
crucial for the Company this year as we work to conclude the DFS
and this engagement with the DFC continues to underpin our
long-term relationship with the DFC, as lead mandated partner, to
assist in this exercise."
Mr Pearce added "Our executive management team will be meeting
DFC in the near term to evaluate the project implementation
strategy and build on the momentum we have already created
together. We believe this is a unique partnership that is
significantly de-risking Orom-Cross and we will continue to
showcase this exceptional asset as we deliver the DFS results this
year.
For further information please
contact:
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.