Blencowe Resources Plc (“Blencowe” or the “Company”) (LSE: BRES) is pleased to announce it has received its first US$1 million mobilisation tranche payment from the Development Finance Corporation (“DFC”).  This represents 20% of the full US$5 million DFC grant for Definitive Feasibility Study (“DFS”) costs, recently completed and announced by Blencowe.

Blencowe announced on 22 September that the Company had secured a US$5 million grant from tier one funding provider DFC to cover a substantial part of the DFS costs for the Orom-Cross Project.  Furthermore, DFC is now the lead mandated partner to deliver a full funding solution for Orom-Cross production, assuming completion of a successful DFS.

Blencowe is confident that this unique strategic relationship will now open doors to unlock additional value at Orom-Cross by expanding the project in ways previously considered not possible due to capital constraints.

Orom-Cross is one of the largest graphite projects worldwide by size and scale of deposit and a 21 year Mining License has already been awarded.  Blencowe took the project through a successful Pre-Feasibility Study in 2022 and is now embarked on the Definitive Feasibility Study as it drives towards decision to mine.  Metallurgical test results by leading graphite industry experts in South Africa, Canada, Australia and China have all underlined Orom-Cross graphite as upgrading to one of the cleanest, purest high grade concentrates of any graphite project, with an excellent mix of both coarse and smaller flakes.  This has recently been confirmed again on a commercial scale within the 100 tonne bulk sample test programme conducted at one of the leading graphite producer’s facility in China.

Cameron Pearce, Executive Chairman commented;

“This first US$1 million received is of significance firstly because it is completely undilutive funding for Blencowe and its shareholders, and secondly because it solidifies the critical strategic relationship that has been developed between our Company and the DFC.  I would like to emphasise once again that the Grant Agreement with DFC does not require Blencowe to match funds input by them.  Their US$5 million funding is provided via this initial mobilisation tranche and thereafter by further tranches that are paid upon Blencowe achieving as-agreed milestones, which are all key deliverables within the DFS program.  We are already well advanced in our achievement of the next milestone which would access and release another US$1 million payment from DFC.”

Mr Pearce added “The DFC Grant Agreement also has no pre-set marketing restrictions and we remain committed to achieving the best offtake partnerships for our products wherever they may be.  Our bulk sample pre-qualification process is well underway and we have considerable offtake interest from recent marketing in China. We look forward to the completion of critical SPG testing in USA to prove that Orom-Cross can ultimately produce an efficient 99.95% uncoated battery-ready product for the anode market which will then lead to further OEM SPG testing as part of our DFS.”