London-listed Blencowe Resources (LSE: BRES) has raised £1.12mn ($1.44mn) to complete a definitive feasibility study (DFS) at its Orom-Cross graphite project in northern Uganda. The funds will also support project financing work and provide working capital, the company said on September 12.

Graphite is a critical mineral used in electric vehicle (EV) batteries, fuel cells and other clean-energy technologies. Each lithium-ion battery requires 50–100 kilograms of graphite, making it the largest component by volume.

Blencowe said it expects to complete the DFS in the fourth quarter of 2025, a key step towards development of Orom-Cross – which would be Uganda’s first commercial-scale graphite mine. It is slated to start production next year. A 2022 pre-feasibility study indicated the project could produce at least 5,000 tonnes of graphite annually during Phase 1, rising to 50,000 tonnes in Phase 2.

The newly announced £1.12mn financing includes a £1.02mn placing of 21.47mn new shares at 4.75 pence each, alongside £100,000 raised through the exercise of 1.67mn options at 6 pence by directors and senior executives. Management said insider participation showed commitment as the firm enters what it called “a critical phase of value creation.”

“The net proceeds are more than sufficient to complete the definitive feasibility study, scheduled for publication in Q4 2025, while also providing a clear runway to advance project financing immediately thereafter, following the recent appointment of the company's project finance adviser,” the company said in a statement.

Whilst the raise is modest compared with Orom-Cross’s projected $62mn capex, completing the DFS is pivotal to advancing the mine and unlocking project finance. For Blencowe, the study underpins offtake talks and access to UK and EU critical mineral funding.

Demand for graphite is forecast to double by 2030, but supply chains remain heavily concentrated in China, which accounts for over 90% of processing. Western governments now classify graphite as strategic, with funding schemes in the UK, EU and US aimed at securing alternative sources.

Blencowe announced last month it had hired South African advisory firm WaterBorne Capital to help finance Orom-Cross, by structuring and securing a funding solution for the mining site, which has a projected initial cost of $62mn.

“Securing an experienced project finance partner is a critical step for Orom-Cross,” Blencowe executive chairman Cameron Pearce said. “WaterBorne Capital’s involvement gives us confidence that a first-class funding solution can be structured, locked down and implemented once the DFS (Definitive Feasibility Study) is finalised.”

Orom-Cross, wholly owned by Blencowe, is described by the junior miner as one of the largest undeveloped graphite resources globally. The DFS will also update resources to JORC standard, positioning the project for offtake negotiations and larger-scale funding.

The raise comes as graphite markets face oversupply and weaker prices in 2025, factors that could challenge junior miners’ ability to advance projects without long-term offtake agreements and financing partners.

In August, as reported by bne IntelliNews, the London-listed mining and development company signed a non-binding agreement with Perpetuus Advanced Materials (PAM) to supply 19,000 tonnes of high-grade fine flake graphite from Orom-Cross over five years.

“This offtake agreement is one of the most significant to date for Orom-Cross in that it provides substantial sales of fine flake concentrate into a leading western buyer,” Pearce said at the time. “Western markets are currently paying considerably more per tonne for fine flake concentrate than Asian markets so the more western contracts we can bring in the better.”

In April, Blencowe signed another non-binding offtake deal with China-based Qingdao TaiDa Carbon for 5,000 tonnes per year of 96% pure fine flake graphite starting in 2026. The three-year agreement followed an 18-month product validation programme.

China controls more than 90% of global graphite processing. Securing domestic offtake partners like PAM could help Blencowe tap into UK critical mineral funding schemes aimed at strengthening supply chain resilience.

For Uganda, Orom-Cross offers a potential entry into the global graphite supply chain and a chance to diversify a mining sector still dominated by gold, alongside cobalt and base metals.