London-listed Blencowe Resources has received the latest disbursement of $500 000 from the US International Development Finance Corporation (DFC), taking total funds received under the overall $5-million technical assistance grant to $4-million.

This grant funding is non-dilutive and comes with no requirement to repay under any circumstances.

A remaining $1-million is expected in two additional tranches of $750 000 and $250 000 upon completion of agreed definitive feasibility study (DFS) milestones.

This resumption of payments follows a 90-day DFC worldwide pause, triggered by the recent change in the US government’s leadership and a case-by-case review of existing funding commitments.

Blencowe says the recommencement of grant payments reflects renewed DFC confidence in Blencowe’s Orom-Cross graphite project, in Uganda, and underlying US government support for its development. 

This is particularly important as discussions continue on potential DFC cornerstone debt support for project implementation.

Key DFS milestones delivered to secure this tranche included completion of micronisation studies – unlocking new high-value product streams; approval of an updated environmental- and social-impact assessment (ESIA); and completion of water studies and the installation of water bores on site.

Blencowe says it completed all of the above milestones in the first quarter of this year marking further tangible progress in delivery of its DFS.

Micronisation testwork was completed with US graphite technical specialist AET, in Chicago, which successfully produced five distinct small-flake product sizes, ranging from 5 to 45 microns.

Blencowe says these micronised samples are now undergoing buyer testing, with price points estimated to be two to ten times higher than standard small flake concentrate.

The company says it views micronisation as a low-cost, high-value route to increase the overall weighted basket price and thus enhance project economics.

Separately, Blencowe notes that the revised ESIA was approved in the first quarter of this year by Ugandan authorities, reflecting the increased scale and enhanced sustainability features of the updated development.

Site water access has also been fully derisked through successful borehole drilling, with additional bores installed to support the local community as part of Blencowe's ongoing social development commitments.

"We have recently had to navigate a degree of uncertainty following the pause in DFC owing to the change in US administration.

“The resumption of DFC grant payments at this pivotal stage of the DFS is a clear vote of confidence that reaffirms US government support and underscores Orom-Cross's strategic importance as a secure large-scale critical mineral supply,” says Blencowe executive chairperson Cameron Pearce.

He says all study work completed to date confirms Orom-Cross as a “world-class” graphite project in the making, with standout fundamentals, including low capital and operating costs and consistently high-quality end products – from commercial-scale small-flake concentrate through to battery-grade 99.95% uncoated spheronised, purified graphite (USPG).

“This high quality is opening doors with Tier 1 buyers everywhere and we continue to advance additional offtake agreements. As development accelerates, we are sharpening our focus on differentiation and downstream value,” he says.

Pearce adds that micronisation offers an immediate and meaningful uplift to Blencowe’s product basket price, while the company’s planned Ugandan downstream processing initiative could position Blencowe as a rare non-China source of 99.95% USPG.

“This is a strategically transformative opportunity. With progress advancing across multiple workstreams, we look forward to updating shareholders on further milestones in the coming weeks,” says Pearce.