London-listed Blencowe Resources has received a further $750 000 tranche of grant funding from the US International Development Finance Corporation (DFC), bringing total funds received under the overall $5-million technical assistance grant to $4.75-million, for the development of the Orom-Cross graphite project, in Uganda.

The final 5% of the funds will be paid in the form of a $250 000 tranche upon completion of a definitive feasibility study (DFS).

This DFC funding is non-dilutive to shareholders of the company and the support arrives at a critical juncture, as the US government continues to assess which global projects to support in the energy transition. 

Graphite remains a declared US critical mineral and the strong backing of Orom-Cross by the DFC signals both confidence in the project and strategic alignment with broader US priorities.

One of the key milestones that needed to be completed to secure this latest tranche was the completion of all infill drilling to substantially increment the mineable reserves. Blencowe has also completed all infrastructure scoping, such as power, roads, water, communications and the camp.

These milestones mark substantial progress in finalising the DFS, the company said.

The completion of the infill drilling programme was part of Blencowe’s wider drilling campaign to infill sections of the existing drilling database to provide further geological confidence and ultimately to provide additional mineable tonnes or reserves within the DFS.

Once the assays are finalised, independent geological consultant Minrom will deliver an updated Joint Ore Reserves Committee (Jorc) resource statement. 

This larger and upgraded resource will provide Orom-Cross with a longer life-of-mine, including the capacity to produce and sell greater volumes each year.

Upgrading inferred and indicated resources into measured resources and reserves is a key requirement for inclusion in the DFS, as only reserves can be counted for mine planning. This work is expected to underpin the final DFS and enhance the commercial outcomes, particularly as graphite demand is forecast to double over the medium term and new supply remains constrained.

With key infrastructure work now completed and reports submitted to the DFC, Blencowe believes it has made significant progress across all critical areas required to support the startup of Orom-Cross.

"This latest tranche of funding from the DFC brings us closer to unlocking significant value at Orom-Cross. Their continued support is a strong endorsement of the project's potential and strategic importance.

“As the revised Jorc resource is finalised and the DFS completed, we are approaching a clear value inflection point,” Blencowe executive chairperson Cameron Pearce said on July 8.