American Rare Earths (ASX:ARR) has received a non-binding letter of interest from the Export-Import Bank of the US (EXIM) to provide a debt funding package of US$456 million ($665.7 million).
The funding package will support the construction and execution phase of the Cowboy State Mine area at the Halleck Creek Project in Wyoming, US.
American Rare Earths, which has a market capitalisation of $126.35 million, says the debt financing will have a repayment term of 15 years under EXIM’s Make More in America initiative.
EXIM, which is the official export credit agency of the US Government, made the offer based on preliminary information submitted regarding expected US exports and US job creation through the Cowboy State Mine Project.
American Rare Earths notes that the letter of interest is not considered a final commitment, yet it shows the “strategic importance” of the Halleck Creek Project.
EXIM will now conduct due diligence activities before proceeding with any final financing arrangement.
Cowboy State Mine is considered the first step in a multi-phased approach to develop the Halleck Creek deposit, which American Rare Earths believes has the potential to be a multi-generational asset.
The Halleck Creek deposit has a 2.34 billion tonne resource and contains 7.48 million tonnes of rare earth oxides, including key magnet metals like neodymium and praseodymium oxides.
Anson Resources (ASX:ASN) also received a non-binding letter of interest from EXIM to provide a debt funding package of up to US$330 million for the construction of a lithium production plant in Utah, US.
The funding is also under the Make More in America initiative.
Anson says the letter of interest represents a material step in the company’s project funding strategy and is recognition of the strong engagement the company has had with the US Government, as well as industry partners in the US.
Meanwhile, Australian gold explorer North Stawell Minerals (ASX:NSM) is conducting a placement and entitlement offer to raise $1.3 million to fund exploration and drilling programs at its Wildwood and Darlington-Caledonia projects in Victoria.
Henslow will act as lead manager to the equity raising and underwriter of the entitlement offer.
The placement and entitlement offer will be conducted at an offer price of $0.01 per share, representing a 28.6% discount to the last closing price of $0.014 per share.
Under the placement, which aims to raise $209,000, some 20.9 million shares will be issued as a single tranche at the offer price.
North Stawell is also undertaking a four for five non-renounceable entitlement offer to raise $1.1 million at the offer price.
C&P Entities have agreed to fully sub-underwrite the offer.
Finally, Askari Metals (ASX:AS2) has entered into a convertible note trust deed with privately held Lawson Mining as trustee for investors, to raise $920,000, subject to shareholder approval.
The funds raised will be used for any fees, interest or other amounts payable to noteholders and their advisors, which are in connection with the convertible note deed, as well as a final repayment of a loan and general working capital.
Askari Metals has engaged with GBA Capital to act as lead manager and bookrunner of the proposed issue of convertible notes.
Subject to receiving shareholder approval, Askari Metals plans to offer eligible holders of the existing AS20 listed options a non-renounceable priority offer to subscribe for two new options for every one AS20 option held at $0.001.
The new options will be exercisable at $0.065 each, expiring on 31 December 2027.
Write to Aaliyah Rogan at Mining.com.au
Images: EXIM Bank
