The Export-Import Bank of the United States has expressed interest in providing funding of up to US$200 million ($302.6 million) to support VHM’s (ASX:VHM) Goschen Rare Earths and Mineral Sands Project in Victoria.
EXIM has been accelerating its funding roll out for resources projects as the US works to get its hands on Western sources and reduce its reliance on China.
VHM’s Goschen project was deemed eligible under EXIM’s Supply Chain Resiliency Initiative, which supports critical mineral supply to US buyers.
The project may also be eligible for additional support under EXIM’s China and Transformational Exports Program.
The letter of intent outlines a financing package with a minimum repayment term of 12 years, subject to standard due diligence and compliance with EXIM’s program, legal, and eligibility requirements.
VHM is now engaging with Export Finance Australia and US EXIM under the Single Point of Entry (SPE) framework, which streamlines the process for securing referrals and joint financings.
CEO Andrew King says the letter of interest from EXIM is a strong endorsement of the Goschen project’s strategic importance to global supply chains.
“It reflects growing international recognition of VHM’s role in delivering critical minerals to key markets,” King says.
“Our engagement through the Single Point of Entry with Export Finance Australia and EXIM provides a clear pathway to secure long-term financing and positions VHM as a trusted partner in the energy transition.”
Last month, VHM was granted environmental approval for the Goschen project, with the company now working towards a final investment decision.
The project hosts a resource of 413,107 tonnes of total rare earth oxide, comprising both light and heavy rare earths.
Goschen is expected to generate revenue from independent product streams with rare earths and heavy minerals concentrates, including zircon and titanium.
Write to Angela East at Mining.com.au
Images: VHM
