REG - Blencowe Resources - Further US$0.5M Grant Funding Received From DFC

Blencowe ResourcesAnnouncement

23/05/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250523:nRSW9518Ja&default-theme=true

RNS Number : 9518J  Blencowe Resources PLC  23 May 2025

Date: 23 May 2025
 

 

Blencowe Resources Plc

("Blencowe" or the "Company")

 

 

Further US$0.5 million Grant Funding received from US International
Development Finance Corporation

Continued DFC Support as DFS nears completion at Orom-Cross

 

Blencowe Resources Plc (LSE: BRES) is pleased to announce receipt of the
latest disbursement of $0.5 million from the US International Development
Finance Corporation ("DFC"), taking total funds received under the overall
US$5.0 million technical assistance grant to $4.0 million. This grant funding
is non-dilutive and comes with no requirement to repay under any
circumstances.

A remaining $1.0 million is expected in two additional tranches - $0.75
million and $0.25 million upon completion of agreed Definitive Feasibility
Study ("DFS") milestones. The next tranche is anticipated as coming in the
near term.

This resumption of payments follows a 90-day DFC worldwide pause, triggered by
the recent US Government change and a case-by-case review of existing funding
commitments. The recommencement of grant payments to Blencowe reflects renewed
DFC confidence in the Orom-Cross project and underlying US Government support
for its development.  This is particularly important as discussions continue
on potential DFC cornerstone debt support for project implementation.

 

Key DFS Milestones Delivered to Secure This Tranche:

·    Completion of micronisation studies - unlocking new high-value
product streams.

·    Approval of updated Environmental and Social Impact Assessment
(ESIA).

·    Completion of water studies and installation of water bores on site.

 

Blencowe completed all of the above milestones in Q1 2025 marking further
tangible progress in delivery of its Definitive Feasibility Study ("DFS").

Micronisation test work was completed with US graphite technical specialist
AET in Chicago who successfully produced five distinct small flake product
sizes, ranging from 5 - 45 microns. These micronised samples are now
undergoing buyer testing, with price points estimated to be 2-10x higher than
standard small flake concentrate. The Company views micronisation as a
low-cost, high-value route to increase the overall weighted basket price and
thus enhance project economics.

Separately, the revised ESIA was approved in Q1 2025 by Ugandan authorities,
reflecting the increased scale and enhanced sustainability features of the
updated development. Site water access has also been fully de-risked through
successful borehole drilling, with additional bores installed to support the
local community as part of Blencowe's ongoing social development commitments.

 

Cameron Pearce, Executive Chairman commented:

"We have recently had to navigate a degree of uncertainty following the pause
in DFC due to the change in US administration. The resumption of DFC grant
payments at this pivotal stage of the DFS is a clear vote of confidence that
reaffirms US Government support and underscores Orom-Cross' strategic
importance as a secure large-scale critical mineral supply."

 

"All Study work completed to date confirms Orom-Cross as a world-class
graphite project in the making, with standout fundamentals: low capital and
operating costs and consistently high quality end products - from commercial
scale small flake concentrate through to battery-grade 99.95% uncoated SPG.
This high quality is opening doors with Tier-1 buyers everywhere and we
continue to advance additional offtake agreements."

 

"As development accelerates, we are sharpening our focus on differentiation
and downstream value.  Micronisation offers an immediate and meaningful
uplift to our product basket price, while our planned Ugandan downstream
processing initiative could position Blencowe as a rare non-China source of
99.95% uncoated spheronised, purified graphite ("USPG").  This is a
strategically transformative opportunity. With progress advancing across
multiple workstreams we look forward to updating shareholders on further
milestones in the coming weeks."

 

Interview with Mike Ralston

Mike Ralston, CEO, provides additional commentary on the DFC payment
announcement in the following video interviews:

 

 

https://www.voxmarkets.co.uk/articles/q-a-with-blencowe-resources-ceo-mike-ralston-2c8b350
(https://www.voxmarkets.co.uk/articles/q-a-with-blencowe-resources-ceo-mike-ralston-2c8b350)

 

https://youtu.be/gbpLDyz6UGE (https://youtu.be/gbpLDyz6UGE)

 

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 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.

 

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEXLBLEELZBBD