REG - Blencowe Resources - AFC Expression of Interest

Blencowe ResourcesAnnouncement

03/03/2025 07:00

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RNS Number : 0559Z  Blencowe Resources PLC  03 March 2025

Date: 3 March 2025

Blencowe Resources Plc

("Blencowe" or the "Company")

 

African Finance Corporation Issues Expression of Interest for Orom-Cross
Project Funding

Tier One African Investment Bank Signals Willingness to Participate in Both
Debt and Project Equity

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce it has received a
formal Expression of Interest ("EOI") from the African Finance Corporation
("AFC" or "the AFC"), a leading multilateral finance institution, regarding
potential participation in both debt and project level equity funding for the
Orom-Cross graphite project in Uganda.

 

AFC: A Premier Institutional Funding Partner

This EOI follows extensive engagement between Blencowe and AFC over the past
few years and represents a key step to securing the AFC as a co-funding
solution partner for Orom-Cross.  The AFC has conducted due diligence on the
Orom-Cross Graphite Project and recognises its high-purity product, low-cost
structure, and strategic positioning as a key supplier of non-China graphite
into the global battery and industrial markets.

The AFC's stated interest includes both debt and project level equity
participation, underscoring its confidence in the long-term value of
Orom-Cross.

The AFC is one of Africa's most established and well-capitalised development
finance institutions, boasting $12.3 billion in assets and a Moody's A3/P-2
credit rating, reinforcing its position as a premier lender for large-scale
resource projects. The AFC has a strong track record in funding major African
mining developments, including:

·    $175 million for Baomahun Gold (FG Gold in Sierra Leone)

·    $86 million for Thor Exploration's Segilola Gold (Nigeria)

·    $130 million for Shalina Resources (DRC copper-cobalt)

AFC's Expression of Interest includes potential funding participation in the
initial start-up phase of Orom-Cross development, targeted for 2026. As part
of this initial investment, AFC has also indicated an interest in
securing future funding rights for subsequent project expansions, aligning
with Orom-Cross's long-term growth strategy.

Graphite's essential role within the global energy transition has made
securing independent, large-scale graphite supply a top priority, and AFC's
engagement provides strong validation of Orom-Cross as one of the world's
most promising new graphite projects.

 

 

Complementing Existing DFC Support

AFC's interest represents a major step forward in securing project financing,
complementing the existing $5 million Technical Assistance Grant
(TAG) provided by the US International Development Finance Corporation
("DFC") in 2023. DFC remains supportive of Blencowe and retains the first
right to provide cornerstone debt funding for Orom-Cross.

With both AFC and DFC now involved, Blencowe is positioning Orom-Cross with a
strong institutional funding pathway that could cover all debt and project
equity financing following DFS completion.

Next Steps

Blencowe will continue its discussions with AFC and other institutional
partners to finalise a financing structure that enables Phase 1 development
in 2026 and ensures a clear pathway to commercial-scale production.

The Company remains committed to delivering a world-class graphite project,
with a low-cost, high-purity supply chain that aligns with European and
North American offtake priorities.

 

Executive Chairman Cameron Pearce commented:

"Securing this Expression of Interest from the African Finance Corporation is
a material milestone for Blencowe. AFC is one of Africa's most respected
financial institutions and its interest in Phase 1 funding, alongside future
development phases, reinforces Orom-Cross's long-term strategic importance.

"Institutional investors are increasingly recognising graphite's critical role
of in the global battery supply chain. With AFC now engaged alongside DFC,
Blencowe is building a strong financial foundation that will position
Orom-Cross as one of a select few new graphite mines advancing towards
production. Our ongoing drill programme is expected to materially increase our
graphite resource, further enhancing Orom-Cross' economics and the attraction
of the project."

"We appreciate AFC's support and look forward progressing discussions. Our
differentiated strategy will mitigate risk, drive long-term success, and
establish Orom-Cross as a premier supplier in the global energy transition."

 

About African Finance Corporation

 

AFC is an Africa-focused infrastructure and development financing institution
established by treaty between sovereign states to accelerate infrastructure
and industrial development across the continent. With total assets of US$12.3
billion, AFC is Africa's second highest investment grade rated multilateral
financial institution, holding an A3/P-2 rating from Moody's Investors
Service.

 

Since 2008 AFC has disbursed more than US$13.2 billion across key
infrastructure and resource projects, with an investment footprint across 36
African countries and 43 member states, including the Republic of Uganda.

 

AFC adds significant value to the development of major mining projects in
Africa by leveraging its in-house technical expertise, international reach,
and relationships for fundraising from private and development finance
institutions alike. The AFC has various long-term investments in the mining
sector across several African countries in addition to investments in a range
of infrastructure projects in transport and logistics, power, heavy
industries, and telecommunications.

 

 

 

For further information please contact:

   Blencowe Resources Plc    www.blencoweresourcesplc.com

 Sam Quinn                   Tel: +44 (0)1624 681 250

                             info@blencoweresourcesplc.com (mailto:info@blencoweresourcesplc.com)

 Investor Relations          Tel: +44 (0) 7891 677 441

 Sasha Sethi                 sasha.sethi@blencoweresourcesplc.com

 Tavira Financial            Tel: +44 (0)20 3192 1733

 Jonathan Evans              jonathan.evans@tavira.group (mailto:jonathan.evans@tavira.group)

Twitter https://twitter.com/BlencoweRes (https://twitter.com/BlencoweRes)

LinkedIn https://www.linkedin.com/company/72382491/admin/
(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.

In 3Q 2024 Blencowe introduced a Joint Venture concept with experienced
downstream graphite processing partners to ultimately produce upgraded 99.95%
SPG in Uganda.  This strategy has several key advantages plus substantial
cost savings which will assist deliver a world class project once DFS is
completed.

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