In an effort that underscores the worldwide chase for essential minerals, UK-based Blencowe Resources has obtained a $5-million technical assistance grant from the US International Development Finance Corporation (DFC). This partnership will push forward the definitive feasibility study (DFS) for Uganda’s Orom-Cross graphite project.
Upon finalizing the deal, Blencowe will immediately pocket an initial $1 million, which is 20% of the grant’s total value. Mining Weekly reported that the remaining sum will roll out as the company achieves specific feasibility milestones. This funding is in sync with the US’s $1 trillion Biden-renewables drive, which seeks a reliable supply chain for pivotal minerals.
In this partnership, the DFC retains a right of first refusal to back the project’s financing, reflecting its intent to lock down these resources. This tie-up propels Blencowe’s ambitions, hinting at a potentially larger DFS, which could boost the project’s overall worth.
Blencowe’s Executive Chairperson Cameron Pearce shared, “Orom-Cross stands out as the first graphite project to clinch such a grant from the DFC. This alliance slashes our project risks and sets us up for global recognition.”
Reflecting on past milestones, Pearce pinpointed the $482 million net value projected for Orom-Cross from a previous study. He remains hopeful that the upcoming DFS might reveal even more lucrative figures.
The DFC’s involvement solves a pressing mining challenge: finding robust financial avenues. Their backing allows Blencowe to move with assurance, knowing they’ve partnered with a stalwart supporter.
With graphite being vital for lithium-ion batteries, its market demand has surged. The rising need for batteries, especially in electric vehicles and renewable energy systems, ensures graphite’s continued relevance.
Ending on a positive note, Pearce said, “With DFC alongside, we aim to roll out a leading graphite project. We’re thrilled about this collaborative journey.”
