Sunrise Energy Metals (ASX:SRL) has secured a conditional commitment for up to US$400 million ($566.09 million) in debt financing from the US Department of War’s Office of Strategic Capital (OSC) to develop its Syerston Scandium Project in New South Wales.
The 25-year debt facility provides ‘transformational’ funding for Syerston, which hosts one of the world’s largest and highest-grade mineable scandium deposits within a Five Eyes jurisdiction.
Chairman Robert Friedland says this is a ‘landmark’ moment for Sunrise and Australia’s mining industry.
“The financing aligns with the goals of the US-Australia partnership on critical minerals,” Friedland says.
“The world has entered an era in which access to critical minerals will shape industrial strength, technology leadership, and national security.
“Scandium is one of the clearest examples, supporting the technologies, industries and defence capabilities that will shape the coming decades.”
The announcement comes as the US Government recently pledged to invest US$3 billion in critical minerals and battery projects to intensify efforts to ramp up domestic production and reduce reliance on foreign supplies.
Terms of the facility
The conditional debt commitment remains non-binding and subject to due diligence, negotiation of definitive documents, deployment of specified equity, and binding offtake agreements.
Approved loan proceeds will fund project expenditure tied to milestones set by the OSC.
As part of its engagement with the OSC, Sunrise has also expanded Syerston’s project scope to include the construction of a scandium metal refinery in the US, which will be modified to produce a range of chemical-grade scandium compounds; a potential accelerated expansion to 180 tonnes per annum (tpa) of scandium oxide; and increased investments in water and power infrastructure to support future expansion.
Consequently, Sunrise notes capital estimates have increased to approximately $450–$475 million.
Initial development targets production of 60 tpa of high-purity scandium oxide over a 32-year mine life, backed by a granted mining lease, established infrastructure, and secured land and water access. Sunrise is also evaluating a second phase to ramp up capacity by an additional 120 tpa.
Pursuing a US listing
To access broader capital markets, Sunrise has also commenced preparations for a US securities exchange listing, which requires shareholder, court, and regulatory approvals.
The company is targeting a final investment decision recommendation in the second half of 2026, with early works and long-lead procurement underway to preserve first production targeted for the second half of 2028.
Sunrise Energy Metals is focused on advancing its 100%-owned Syerston Scandium Project in NSW with the aim of delivering the world’s first source of mineable, ‘high-grade’ scandium.
Write to Paula Fabe at Mining.com.au
Images: Mining.com.au
