London-listed Blencowe Resources has received a formal expression of interest (EoI) from multilateral finance institution the African Finance Corporation (AFC) regarding potential participation in both debt and project level equity funding for the Orom-Cross graphite project, in Uganda.

This EoI follows extensive engagement between Blencowe and the AFC over the past few years and represents a key step to securing the AFC as a co-funding solution partner for Orom-Cross, the company points out.

The AFC has conducted due diligence on the Orom-Cross project, and has recognised its high-purity product, low-cost structure and strategic positioning as a key supplier of non-China graphite into the global battery and industrial markets, Blencowe posits.

The AFC’s stated interest includes both debt and project level equity participation, underscoring its confidence in the long-term value of Orom-Cross.

The AFC’s EoI includes potential funding participation in the initial startup phase of Orom-Cross development, targeted for 2026.

As part of this initial investment, the AFC has also indicated an interest in securing future funding rights for subsequent project expansions, aligning with Orom-Cross's long-term growth strategy.

The AFC’s interest complements the existing $5-million technical assistance grant provided by the US International Development Finance Corporation (DFC) in 2023.

With both the AFC and the DFC now involved, Blencowe says it is positioning Orom-Cross with a strong institutional funding pathway that could cover all debt and project equity financing following definitive feasibility completion.

Blencowe will continue its discussions with the AFC and other institutional partners to finalise a financing structure that enables Phase 1 development in 2026 and ensures a clear pathway to commercial-scale production.

“Securing this EoI from the AFC is a material milestone for Blencowe. The AFC is one of Africa’s most respected financial institutions and its interest in Phase 1 funding, alongside future development phases, reinforces Orom-Cross's long-term strategic importance,” highlights Blencowe executive chairperson Cameron Pearce.

“Institutional investors are increasingly recognising graphite’s critical role in the global battery supply chain. With the AFC now engaged alongside DFC, Blencowe is building a strong financial foundation that will position Orom-Cross as one of a select few new graphite mines advancing towards production.

“Our ongoing drill programme is expected to materially increase our graphite resource, further enhancing Orom-Cross’s economics and the attraction of the project,” he adds.