Australian Strategic Materials (ASX:ASM) has received a non-binding and conditional letter of interest from Canada’s official export credit agency (ECA) Export Development Canada (EDC) for up to $400 million in debt financing for the Dubbo Project in New South Wales.
Australian Strategic Materials, which has a $191.4 million market capitalisation, says it has garnered the attention of EDC, as well as other ECAs, due to ongoing discussions regarding funding for Dubbo’s construction and execution phase.
The company notes there has been interest from government bodies, investors, and industry groups in North America, stemming from a policy alignment between Australia and North American jurisdictions.
EDC’s letter of interest is supported by potential equipment and services supplied from Canadian companies for the execution phase of the Dubbo project. Provision of financing is subject to completion of EDC’s due diligence process, obtaining all requisite internal approvals, and typical project finance conditions.
The EDC letter of interest will expire on 25 April 2025.
EDC’s letter of interest follows both Export Finance Australia’s previous conditional finance support of $200 million debt funding and the recently announced US$600 million ($923 million) from the Export-Import Bank of the United States.
The company says EDC’s indicative financial support increases sourcing flexibility and demonstrates the growing confidence in a shared financing for the Dubbo Project.
Australian Critical Materials Managing Director and CEO Rowena Smith notes the company’s focus has been establishing strategic partnerships in North America that support the development of its mine strategy.
“We see the growing strength of those relationships and the momentum in financial support as recognition of the strength of the Dubbo project and its significance as a reliable, responsible and secure source of critical minerals. We look forward to working with the EDC and progressing with the due diligence and approval process.”
Dubbo sits near the town of Toongi about 400km northwest of Sydney and Newcastle and is considered prospective for light and heavy rare earths, zirconium, niobium, and hafnium.
Australian Strategic Materials is an emerging vertically integrated producer of critical minerals for new growth industries, high technologies, and sustainable energy solutions.
Write to Adam Drought at Mining.com.au
Images: Australian Strategic Materials
