Emerging critical minerals producer, Australian Strategic Materials (ASX:ASM), witnessed a surge in shares following the company’s reception of a preliminary and conditional Letter of Interest from the Export-Import Bank of the United States (US EXIM).
The letter proposes a debt funding package of up to US$600 million (A$923 million) for the development and execution phase of the Dubbo project located in New South Wales.
“The Dubbo project is a globally significant rare earths and critical minerals asset, well positioned to support the joint objective of Australia and the US to develop and expand reliable, responsible, and secure global access to critical minerals,” ASM Managing Director and CEO, Ms. Rowena Smith said.
The Dubbo project stands as the cornerstone of ASM’s vertically integrated business, having provided a long-term resource and focus on rare earths and critical minerals.
US EXIM’s expression of interest in financing, highlights the interest from North American governmental, investor, and industrial entities, and builds upon Export Finance Australia’s (EFA) prior support of A$200 million debt funding for the project.
The support from US EXIM is contingent upon the inclusion of US-sourced content, including equipment, goods, and services during the construction phase of the project.
This ongoing collaboration between Australia and the US through the Australia-US Taskforce on Critical Minerals reflects a shared commitment to secure sustainable critical mineral supply chains, benefiting both nations.
ASM shares are up around 20 per cent and last traded at $1.49, as of 9:45 am AEDT.