Blencowe Resources PLC on Tuesday said it has received its first $1 million mobilisation tranche payment from the Development Finance Corp.
Blencowe Resources is a London-based graphite miner operating the Orom-Cross project in northern Uganda.
In September, Blencowe announced a $5 million grant from the US government’s Development Finance for its Orom-Cross graphite project.
Development Finance is now the lead mandated partner to deliver a full funding solution for Orom-Cross production, assuming completion of a successful definitive feasibility study.
Blencowe said 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.’
Chair Cameron Pearce said: ‘This first $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.’
Shares in Blencowe were up 1.6% to 4.83 pence each in London on Tuesday afternoon.
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