Date: 15 July 2024
Blencowe Resources
Plc
("Blencowe" or the
"Company")
Fourth tranche US$0.5million
Grant Funding received from US International Development Finance
Corporation
DFC Grant funds continue to support
ongoing Orom-Cross Feasibility Study work
Blencowe Resources Plc (LSE: BRES) is pleased
to announce the receipt of a fourth tranche of funding from the
United States International Development Finance Corporation
("DFC"). The DFC is the private sector lending arm of the
United States Government. This latest payment of US$0.5
million will continue to support the ongoing Orom-Cross Definitive
Feasibility Study ("DFS") costs and brings the total grant funding
received to US$3.5 million since the Technical Assistance Grant
funding agreement was signed with the DFC in September
2023.
Highlights:
· US Government support:
via the DFC, remains a committed partner to help deliver
Orom-Cross Definitive Feasibility Study ("DFS").
·
US$3.5 million input by DFC
to date: with a further US$1.5M committed on
future milestones.
·
DFC remain an invested and
incentivised cornerstone party: to consider a
full funding solution for Orom-Cross project implementation once
the DFS is successfully completed.
·
DFS work
continues: as Blencowe drives towards
completion, including offtake contracts.
Blencowe has successfully completed further key
DFS milestones to unlock an additional $0.5 million grant funding
from the DFC. This is part of the overall US$5.0 million Technical
Assistance Grant agreement that Blencowe completed with the DFC in
September 2023. Orom-Cross remains one of the only
pre-production resource projects worldwide to have received this US
Government/DFC assistance.
Blencowe continues to consider all means
possible to value-add at Orom-Cross, using the Project's unique
characteristics to appeal to graphite industry leaders.
Orom-Cross is becoming well known in graphite markets as one of the
lowest operating cost producers worldwide that can also be brought
into production for a much lower capital cost than most of its
peers. Furthermore, the high quality of its end products have
attracted a host of interested parties for offtake discussions, and
the Company is working through a rigorous final bulk sample testing
process to become qualified to then lock down offtake contracts
with tier one buyers.
The DFC involvement in the Project provides
Orom-Cross with top tier international funding party credibility,
as well as actual cash towards the completion of the DFS.
This unique collaboration is another key differentiating factor for
the Company.
Cameron Pearce, Executive Chairman
commented;
"We will continue to use a combination of DFC funding and our
own funds raised to get the DFS completed in a fashion that does
not substantially dilute our shareholders. This is important
to us. We have come a long way through DFS already with
minimum impact to our register and we want to continue that same
course of action ahead."
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 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.