Natural resources company Blencowe Resources has raised £635 000 through the issue of 12.7-million new shares to maintain momentum on the definitive feasibility study (DFS) work that is under way at the Orom-Cross graphite project, in Uganda.
Work on the DFS began early this year and is being managed by CPC Engineering.
Blencowe recently announced that it had passed the key screening hurdles by the Development Finance Corporation (DFC) regarding a $4.5-million technical assistance grant to fund 50% of the DFS. The company expects to complete the process of obtaining the grant with DFC over the coming weeks and then be able to draw down funds for the DFS work.
The net proceeds of the capital raise, however, allow Blencowe to avoid an immediate delay to the DFS programme while the DFC grant is being finalised.
"We are very pleased to secure additional funding to continue the DFS work programmes without delay. The DFC grant should be completed in the near future and the company is focused on maintaining the momentum to optimise the benefits of this.
"Securing the support of a tier one financial institution such as the DFC provides the project and our company with a high degree of credibility and we are working through the process with the DFC so that they may formally join as our partner on the balance of the DFS work," comments Blencowe chairperson Cameron Pearce.
He adds that the company is also making progress on metallurgical studies in China and the US, with initial results expected in the near term.
In January, Blencowe delivered 20 kg of concentrate to technical experts at Wuhan University of Technology in China and 5 kg to American Energy Technologies for spheronised purified graphite and expandables testing.
A further 100 t bulk sample has been extracted and is in transit to Jilin Huiyang New Material Technology Company.
"A favourable outcome in the test work has the potential to ultimately provide a funding solution for Orom-Cross to first production," Pearce says.