Blencowe Resources (BRES) has announced that it is in receipt of a fifth disbursement from the US International Development Finance Corporation, known as the DFC.
The latest US$500,000 grant takes total funds received under the overarching US$5 million technical assistance grant originally awarded to US$4 million.
The grant funding is non-dilutive and comes with no requirement to repay under any circumstances.
Furthermore, a remaining US$1 million is expected in two additional tranches - US$750,000 and $250,000 - upon completion of agreed definitive feasibility study milestones. The next payment anticipated in the near term.
This resumption of payments follows a 90-day DFC worldwide pause, triggered by the recent change in the US government, and a subsequently initiated case-by-case review of existing funding commitments.
The recommencement of grant payments to Blencowe reflects renewed DFC confidence in the company’s Orom-Cross graphite project in Uganda.
Meanwhile, discussions continue on potential DFC cornerstone debt support for project implementation.
And progress at Orom-Cross continues. For this tranche of DFC money, Blencowe was required to pass three milestones. These were the completion of micronisation studies, the approval of an updated environmental and social impact assessment, and the completion of water studies and the installation of water bores on site.
“We have recently had to navigate a degree of uncertainty following the pause in DFC due to the change in US administration,” said Cameron Pearce, Blencowe’s executive chairman.
“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 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 bulk small flake concentrate through to battery-grade 99.95% uncoated SPG. This high quality is opening doors with Tier-1 buyers and we continue to advance additional offtake agreements."
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It’s good to see the DFC swinging round in support of Blencowe again after a brief period of uncertainty following the election of President Trump. Not all of the projects the DFC supports will get the nod, so it’s a clear indication both of the quality and the strategic significance of Orom-Cross that the scheduled grant payments are resuming. So, what next?
As development accelerates, Blencowe will turn more towards differentiation and downstream value, hence the micronisation work. The company’s planned Ugandan downstream processing initiative could position it as one rare non-China source of 99.95% uncoated spheronised, purified graphite. There is much to like here.
Watch our latest interview with Blencowe's Mike Ralston - here.