Blencowe's DFC cash comes in
We're on the verge of project level financing
Good Afternoon Team.
Blencowe has just had its latest slice of US grant cash - and now it’s time to look to the future.
On the financial side, the DFC delay did mean that BRES needed to raise capital at 3p last month - £1 million (and circa £90k from retail) to complete the current 6,750m drilling programme and advance the final stages of the Definitive Feasibility Study for Orom-Cross.
On 7 May, we were treated to an exploration update - including, most importantly, that this drilling is nearing completion.
Because the program is a key part of the company's ongoing efforts to expand and upgrade its resource base, targeting a material increase in the JORC-compliant Resources and Reserves…
…at what is fast emerging as a world-class graphite deposit.
For context, Blencowe has successfully completed 100% of its infill drilling at the Camp Lode and Northern Syncline deposits. All cores have been logged, sampled, and are now at accredited laboratories in Tanzania and South Africa for assaying.
Geological data continues to confirm strong consistency in ore zones aligned with current resource models - with surface mapping conducted during infrastructure development revealing extensive near-surface ore, which is expected to reduce mining costs and accelerate the path to production by lowering the strip ratio.
As a reminder, BRES is already competitive, but getting opex even lower will be key to favourable financing.
Exploration drilling has also been completed at the newly identified Northern Syncline (West) extension, with 70 holes successfully drilled and logged.
The drilling teams have now moved to the Beehive deposit — the first major step-out target, located south of the original lodes.
Initial indications at Beehive are promising, with multiple deeper holes exceeding 100 metres planned to test ore continuity at depth.
Blencowe believes success here could validate previous estimates of a 2–3 billion tonne graphite resource across the Orom-Cross project, potentially positioning it among the largest graphite deposits globally.
Better still, much of this resource lies at shallow depths, which increases the potential for low-cost extraction.
Blencowe has also commenced construction of a permanent exploration camp at Orom-Cross, the first significant onsite infrastructure. And the company remains on track for first production in 2026.
Executive Chairman Cameron Pearce enthuses that:
‘independent geologists have estimated Orom-Cross to be one of the most substantial graphite deposits worldwide and success at Beehive will further enhance our confidence in that evaluation."
All of this work is integral to expanding both Resources and Reserves and will ultimately feed into the Definitive Feasibility Study underway. Importantly, this technical progress supports the commercial traction we're now seeing with offtake partners and lays the groundwork for strategic project-level funding discussions already underway.’
Grant funding lands
BRES has also got another $500,000 in grant funding today from the US International Development Finance Corporation - taking total funds received under the overall $5 million technical assistance grant to $4 million.
Another $750,000 is expected shortly and the final $250,000 upon publication of the DFS - expected later this year.
I would have loved to see how the delay played out. Much like the backfiring tariffs, I expect something very much along these lines:
Trump: ‘We’re cancelling DFC funding! America First! Let’s bring that capital home – invest in AMERICAN greatness, not overseas!’
Overseas projects: ‘A’ight bet… China, you up?’
Trump: ‘WAIT. NO. NOT LIKE THAT. Here’s your money back.’
DFC: awkward silence and patriotic music intensifies
Good work Donald.
Anyway.
I won’t put an exact timeframe on when the DFS arrives - much like a dissertation (which is basically what a DFS is) - you get all the data, start the write-up, realise you need something else, get that done, start writing again…
but we are very close. We’re talking in months and weeks.
This new capital follows a 90-day DFC worldwide pause - and yes, renewing the marriage vows is very supportive of Orom-Cross’s potential, especially as the company seeks DFC cornerstone debt support (together with the African Finance Corporation and offtakers).
But BRES has not been standing still, waiting for the US to sort itself out. Key DFS work has been carried out, including micronisation testing - successfully completed in Chicago by graphite specialists AET, which produced five distinct small flake graphite products ranging from 5-45 microns in size.
These micronised samples are now undergoing evaluation by prospective buyers, with projected price premiums 2 to 10 times higher than conventional small flake concentrate.
Importantly, the updated ESIA also received approval from Ugandan authorities in Q1 2025.
And site water access has been fully secured through successful borehole drilling, with extra boreholes installed to benefit the local community.
Pearce notes ‘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' strategic importance as a secure large-scale critical mineral supply….This high quality is opening doors with Tier-1 buyers everywhere and we continue to advance additional offtake agreements.’
The bottom line
It’s all rather simple really.
Get the DFS.
Get project level financing from the DFC and the AFC, alongside other Tier 1 lenders and the offtakers we already know about.
And we’re away.
This is a £12 million market capped company sporting an NPV of $482 million - this itself a 52% increase on the previously reported Preliminary Economic Assessment - with a likely further increase to come soon.
The fact that BRES is one of the first to get funding after the pause is important.
The fact that the EU will be reviewing more strategic projects soon matters too.
The fear is gone, we’re back on track, and between drilling, funding and political backing, a return to 4p+ is surely only a matter of time.
Have a great weekend.