Blencowe Resources PLC announced on Wednesday the receipt of a third tranche of its grant from the US International Development Finance Corp, to fund work on the Orom-Cross graphite project in Uganda.

The $1.0 million tranche payment represents 20% of the total $5.0 million grant due to be given by the DFC to the mineral exploration and development company.

Blencowe has received $3.0 million of the grant since the agreement was finalised in September 2023 for its work on the Orom-Cross definitive feasibility study.

The Orom-Cross graphite project was issued by the Ugandan government in 2019. Blencowe hopes to establish a downstream processing facility that would upgrade the purity of the graphite.

This graphite upgrade would more than quadruple the value of the small flake concentrate, increasing it to $2,500 per tonne from $600.

Blencowe also completed a successful pre-feasibility study for the project in July 2022.

Blencowe’s Executive Chair Cameron Pearce said: ‘I would like to thank DFC for their ongoing support, they are an outstanding project partner and we are able to accelerate the pace of our studies with their assistance.

‘Our DFS results underscore what an exceptional graphite project Orom-Cross is, including its size and scale, low operating costs, low capital start-up costs and high quality purified end products which are building interest with key offtakers and end users. We are committed to adding value wherever possible to ensure that our DFS delivers a standout result ahead.’

Blencowe shares rose 2.3% to 4.40 pence each in London on Wednesday afternoon.

Jangada Mines PLC, a mining project development company with interests in Brazil and elsewhere, reported it was ‘pleased’ with Blencowe’s announcement. Jangada owns around 10% of Blencowe.

Jangada’s Executive Chair Brian McMaster said: ‘With significant support from the US International Development Finance Corp, which has now paid $3.0 million of the agreed $5.0 million to advance a DFS at Orom-Cross this exciting company and its world-class graphite project that has an initial JORC resource of 24.5 metric tonnes at 6.0% total graphitic carbon based on 2.0% of the licence area drilled, is clearly one to watch.’

A JORC resource refers to a method of measuring the size of a mineral deposit discovered by a company.

Jangada shares fell 8.2% to 1.70p.

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