Blencowe Resources PLC on Monday said it received a formal letter of interest regarding a participation in debt funding by the US International Development Finance Corp.

The developer of the Orom-Cross graphite project in Uganda said the DFC indicated its willingness to participate in debt funding for its Orom-Cross graphite project, following discussions with the DFC project funding division.

So far, about $2 million of grant funds have been received from the DFC under a technical assistance grant.

‘This letter of interest is the first step of engagement with the DFC project funding division to advance the project financing process. During the course of 2024 Blencowe will work closely with the DFC to reach a decision to mine subject to the definitive feasibility study results and other due diligence,’ Blencowe said.

Executive Chair Cameron Pearce said: ‘This letter of interest is an important next-step in the process for DFC to consider project financing support to build Orom-Cross into a producing mine. Project funding will be crucial for the company this year as we work to conclude the definitive feasibility study and this engagement with the DFC continues to underpin our long-term relationship with the DFC, as lead mandated partner, to assist in this exercise.’

Jangada Mines PLC, a London-based and Brazil-focused miner, has a stake of around 10% in Blencowe.

Blencowe shares rose 7.0% to 4.60 pence each on Monday morning in London, while Jangada Mines shares were flat at 1.40p each.

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