Australia’s VHM said on Monday it has received a letter of interest from the US Export-Import Bank (EXIM) for up to $200 million in funding to support development of its Goschen rare earths and mineral sands project.
Earlier in the day, shares of the rare earths miner rose 6.1% to A$0.26, their highest since September 25.
The letter of interest from EXIM, the official export credit agency of the US government, proposes funding with a maximum repayment term of 12 years, as Western economies work to diversify the crucial rare earths supply chain away from top producer China.
US government officials have discussed taking a stake in Critical Metals Corp, which would give Washington a direct interest in the largest rare earths project in Greenland, Reuters reported on Saturday, citing people familiar with the matter.
VHM said EXIM has identified the Goschen project as a candidate under its Supply Chain Resiliency Initiative (SCRI), which aims to support projects that strengthen secure and diversified supply chains for US industries.
“VHM is well positioned to advance the Goschen project and become a globally significant solution to the current critical minerals supply chain issues”, CEO Andrew King said.
The Goschen project, located in Australia’s Victoria, is classified as a Tier 1 integrated rare earth and mineral sands project.
(By Nichiket Sunil; Editing by Sumana Nandy and Rashmi Aich)
