Blencowe Resources has announced a partnership with Singaporean graphite sales and marketing company Triessence and an unnamed Asian SPG (spherical graphite) and anode material producer (SPG Partner) to set up a graphite beneficiation facility in Uganda.
The parties signed a memorandum of understanding, paving the way for the creation of a joint venture (JV) to build a graphite beneficiation facility near Blencowe's Orom-Cross project.
This facility will be equipped to produce 99.95% graphite for Li-ion batteries, enhancing commercial returns for Blencowe's Orom-Cross Project.
The collaboration with industry experts is expected to reduce operational risks and secure a life-of-mine offtake partner.
Blencowe and Triessence will each own a 50% stake in the SPG facility, while the SPG Partner will offer operational expertise.
Blencowe will maintain full ownership of the Orom-Cross project.
The partnership is set to upgrade 96% graphite concentrate to 99.95% uncoated SPG, significantly increasing commercial returns.
Triessence will fund half of the capital costs and has committed to purchasing all end products, ensuring consistent revenue and premium pricing for Blencowe.
The move to sell 99.95% uncoated SPG is expected to unlock higher returns compared with selling graphite concentrate.
Blencowe executive chairman Cameron Pearce said: “Our JV team will now focus on the SPG facility feasibility study and integrating it with the Orom-Cross DFS [definitive feasibility study], providing a comprehensive solution that adds considerable value.
“We anticipate minimal additional costs for this study as we are utilising our partners’ existing vast experience for all costings and design work, and no further bulk sample testing or further resource drilling is needed.”
