REG - Blencowe Resources - DFC Grant Fourth Tranche

Blencowe ResourcesAnnouncement

15/07/2024 07:00

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RNS Number : 3163W  Blencowe Resources PLC  15 July 2024

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:

   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@flowcomms.com (mailto:sasha@flowcomms.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 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.

 

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