By Joe Hoppe

Blencowe Resources PLC shares rose Wednesday after the company said it has received Uganda's government approval for a one-off permit to export bulk sample graphite from its Orom-Cross project.

Shares at 0901 GMT were up 0.4 pence, or 9.3%, at 4.7 pence.

The London-listed mining company said the Ugandan Ministry of Energy and Mineral Development approved the export of materials from the project to test facilities in China, to enable final bulk metallurgical test work to be undertaken in 2023.

Ugandan law doesn't allow for the export of unprocessed raw materials, making this a landmark decision for the government, Blencowe said.

The export permits for 100 metric tons of bulk raw ore materials and 400 liters of local groundwater, a representative bulk sample from the initial five years of production. The sample will be used to assess metallurgical process on a commercial scale, to maximize the grade, recovery and flake size from the project.

"This bulk sample trial is significant as a precursor that ultimately leads us to a full offtake agreement, which in turn would enable us to kick start production with a critical mass of product sold to drive profitability and cash flow," Executive Chairman Cameron Pearce said.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

January 11, 2023 04:27 ET (09:27 GMT)

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