Last checked at 
15 Jul 2024 07:00
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 Sam Quinn |
www.blencoweresourcesplc.com Tel: +44 (0)1624 681 250 info@blencoweresourcesplc.com
|
Investor Relations Sasha Sethi | Tel: +44 (0) 7891 677 441 sasha@flowcomms.com
|
Tavira Financial Jonathan Evans | Tel: +44 (0)20 3192 1733 jonathan.evans@tavira.group
|
Twitter https://twitter.com/BlencoweRes
LinkedIn 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.
