REG - Blencowe Resources - Receipt of further $1m Tranche from the DFC

Blencowe ResourcesAnnouncement

25/01/2024 07:00

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RNS Number : 8372A  Blencowe Resources PLC  25 January 2024

Date: 25 January 2024
Blencowe Resources Plc

 
     ("Blencowe" or the "Company")

 

 

Second tranche US$1 million Grant Funding received from US International
Development Finance Corporation

Funds paid to Blencowe for Orom-Cross Project Definitive Feasibility Costs

 

Blencowe Resources Plc ("Blencowe" or the "Company") (LSE: BRES) is pleased to
announce it has received its second tranche US$1 million funding payment from
the United States International Development Finance Corporation ("DFC").
This represents a further 20% of the full US$5 million DFC grant to be
utilised for Orom-Cross Definitive Feasibility Study ("DFS") costs, with US$2
million received in total to date since this agreement was signed in 2023.

This tranche was disbursed on the completion of several key goals as delivered
within the DFS, namely;

·    Tailings processing and disposal options study completed.

·    Spheronised purified graphite ("SPG") test work completed (both
coated and uncoated products).

·    Processing plant flowsheet finalised through 100 tonne pilot plant
testing.

·    Further 600 tonnes bulk sample mined and ready for export to China
for stage two commercial scale testing.

Blencowe can report that all of the above tasks were successfully completed
with results reported to market in 4Q 2023.  The SPG test work completed by a
leading US graphite technical expert was particularly noteworthy as results
indicate Orom-Cross graphite can be purified up to a 99.995% product, which is
rare and puts the graphite quality from Orom-Cross at the very highest
level.

This is of great significance when considering niche markets, product pricing
and offtake relationships.

The Company is well on its way to completing the milestones as required for
disbursement of the third DFC tranche of grant funds, which will deliver
another US$1 million for additional DFS work.

Additionally the Company is continuing to see strong levels of serious
interest from a range of high quality offtake groups and strategic parties.

 

Cameron Pearce, Executive Chairman commented;

"Following successful completion of key feasibility study milestones this
latest tranche of grant funding we have received from DFC is valuable to
Blencowe and we extend our sincere appreciation to the DFC for their ongoing
support.  The DFC remains a critical strategic partner of Blencowe with
discussions underway as to potential funding support from the DFC for the full
Orom-Cross graphite project implementation ahead."

 

Mr Pearce added, "I would also like to extend our thanks to our entire
operational team both in-country and beyond for their steadfast commitment to
achieving objectives and driving progress with the Orom-Cross feasibility
study.  Orom-Cross is a unique graphite project with its rare suite of key
attributes amongst its peers.  The DFC identified these outstanding
characteristics in their due diligence process when assessing Orom-Cross and
investors should note that other strategic parties are also taking notice,
which provides a strong platform for activities in 2024."

 

 

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.

 

 

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