REG - Blencowe Resources - Receipt of $1m Grant First Tranche from DFC

Blencowe ResourcesAnnouncement

10/10/2023 12:30

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RNS Number : 6247P  Blencowe Resources PLC  10 October 2023

Date: 10 October 2023
 
            Blencowe Resources Plc

("Blencowe" or the "Company")

 

Blencowe receives first US$1 Million Grant funding from Development Finance
Corporation for Orom-Cross Graphite Project

Initial 20% Mobilisation tranche paid to Blencowe for Project Feasibility
Costs

 

Blencowe Resources Plc ("Blencowe" or the "Company") (LSE: BRES) is pleased to
announce it has received its first US$1 million mobilisation tranche payment
from the Development Finance Corporation ("DFC").  This represents 20% of the
full US$5 million DFC grant for Definitive Feasibility Study ("DFS") costs,
recently completed and announced by Blencowe.

Blencowe announced on 22 September that the Company had secured a US$5 million
grant from tier one funding provider DFC to cover a substantial part of the
DFS costs for the Orom-Cross Project.  Furthermore, DFC is now the lead
mandated partner to deliver a full funding solution for Orom-Cross production,
assuming completion of a successful DFS.

Blencowe is confident that this unique strategic relationship will now open
doors to unlock additional value at Orom-Cross by expanding the project in
ways previously considered not possible due to capital constraints.

Orom-Cross is one of the largest graphite projects worldwide by size and scale
of deposit and a 21 year Mining License has already been awarded.  Blencowe
took the project through a successful Pre-Feasibility Study in 2022 and is now
embarked on the Definitive Feasibility Study as it drives towards decision to
mine.  Metallurgical test results by leading graphite industry experts in
South Africa, Canada, Australia and China have all underlined Orom-Cross
graphite as upgrading to one of the cleanest, purest high grade concentrates
of any graphite project, with an excellent mix of both coarse and smaller
flakes.  This has recently been confirmed again on a commercial scale within
the 100 tonne bulk sample test programme conducted at one of the leading
graphite producer's facility in China.

 

Cameron Pearce, Executive Chairman commented;

"This first US$1 million received is of significance firstly because it is
completely undilutive funding for Blencowe and its shareholders, and secondly
because it solidifies the critical strategic relationship that has been
developed between our Company and the DFC.  I would like to emphasise once
again that the Grant Agreement with DFC does not require Blencowe to match
funds input by them.  Their US$5 million funding is provided via this initial
mobilisation tranche and thereafter by further tranches that are paid upon
Blencowe achieving as-agreed milestones, which are all key deliverables within
the DFS program.  We are already well advanced in our achievement of the next
milestone which would access and release another US$1 million payment from
DFC."

 

Mr Pearce added "The DFC Grant Agreement also has no pre-set marketing
restrictions and we remain committed to achieving the best offtake
partnerships for our products wherever they may be.  Our bulk sample
pre-qualification process is well underway and we have considerable offtake
interest from recent marketing in China. We look forward to the completion of
critical SPG testing in USA to prove that Orom-Cross can ultimately produce an
efficient 99.95% uncoated battery-ready product for the anode market which
will then lead to further OEM SPG testing as part of our DFS."

 

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)

 First Equity Limited        Tel: +44(0)20 7330 1833

 Jason Robertson             jasonrobertson@firstequitylimited.com
                             (mailto:jasonrobertson@firstequitylimited.com)

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.

 

Development Finance Corporation (DFC)

The DFC is the primary US Government finance institution set up to provide
financially sound funding solutions for private-sector initiatives pertaining
to critical challenges facing the world, in this case the drive towards
increased sustainability across the planet.  It is an agency of the United
States federal government and represents US interests.

DFC's lending capacity is used to provide loans, guarantees, equity
investments and political-risk insurance for private-sector led development
projects, feasibility studies and technical assistance.  DFC invests across
several sectors with stated goals of empowerment, innovation, investment into
Africa, green energy and climate change.

Orom-Cross is directly linked with several of these goals.  This project may
ultimately become one of the largest graphite producing operations in the
world over a very long mine life, delivering an end-product in a sustainable
manner which is a non-replaceable input component to lithium-ion batteries.
Demand for graphite is accelerating at a rate where it is doubling every few
years, and is expected to continue growing exponentially into the future.
Graphite is therefore high on the US Government critical metals and minerals
list and assisting to open up long term supply chain of graphite is a key
strategy.

Orom-Cross will also 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 will be audited on their
sustainability credentials by 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.

 

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