Syrah Resources the graphite producer in Mozambique announced today that they had secured funding to the tune of US$150M from the United States International Development Finance Corporation (“DFC”).  The loan is to support the development of the Balama Graphite Operation in Mozambique.

The US DFC is commited to support development projects in Africa, particularly in the 'Critical Minerals' space, Graphite being one such identified mineral by the US. 

Ducks Lining Up for Blencowe

Many that have been following Blencowe Resources' news will be familiar with the DFC.  The DFC have not only been supporting Blencowe with a $5M contribution to the feasibility costs for Orom-Cross, but also signed a Letter of Intent (LOI) in terms of providing a significant portion of debt funding for the developemnt of Orom-Cross, RNS here

Todays news on Syrah further substantiates the US DFC's intent in supporting high-quality project development in Africa in order to combat the stranglehold on critical minerals by China.

The ducks really are lining up for Blencowe now as they progress the later stages of their Definitive Feasibility Study (DFS).

Blencowe have been continually de-risking the Orom-Cross project in Uganda having achieved some significant milestones over the course of the year as follows:

• Regular receipts of US DFC Grant Funding 
• First off-take MOU agreement for 15,000 tonnes of blended large flake graphite (66% of large flake product)
• Conversion of 600 tonne bulk sample to 96% concentrate confirming commercial scale product
• Completion of Bulk Sample 'commercial-scale' test-work programme 
• SPG (Spheronized Purified Graphite) Large volume of battery-ready uncoated SPG produced from Bulk Sample
• Successful Micronisation testing completed at AETC in Chicago producing all five key product ranges.
• Successful certification of Environmental and Social Governance (“ESG”), policies and procedures
• MoU signed for Graphite Beneficiation facility in Uganda
• Global MSP Accreditation opening additional funding avenues

Each of the milestones above are in-themselves significant de-risking steps that should culminate in a robust DFS, critical to obtaining project finance.  

Perhaps one of the most signifcant recent news announcements was the Global MSP Accreditation the company reported earlier in the month.  You can read more about this in ou SmallCapPix article here

Why was this news so important, well it means that Orom-Cross has been identified as one of an 'elite group' of critical minerals projects globally.  Accreditation provides international exposure at the highest level, along with enhancing the project's credibility with tier-1 off-takers, thus enabling access to potential new funding sources.

When you combine this with the US DFC's LOI on debt-funding and their involvement in grant funding to date, and the fact they have just provided funding for another African Graphite development project, investors should see that Blencowe now have a more than credible multi-funding-line opportunity emerging that should see the orom-Cross project come to fruition.  Now if that happens will the company still be trading at a £10M market cap valuation.  Probably Not!