Victory Metals (ASX:VTM) has received a letter of commitment from Sanabil Investments for a US$10 million ($15.4 million) loan facility to advance production of critical minerals, aligning the company with Saudi Arabia’s Vision 2030 program.
The facility comes with a two-year moratorium on interest payments at a rate of 3.9%, as a part of Sanabil’s US$3 billion campaign to fund “high impact” companies and projects.
As listed in the terms of this agreement, Sanabil will be offered the first right to provide future funding for the development and construction of the facility, currently estimated at $330 million.
CEO Brendan Clark says funding from Sanabil marks a major milestone as it positions the company with one of the “most respected” sovereign investment institutions globally.
“Sanabil’s support goes far beyond capital. They bring a funding pathway for North Stanmore to development, deep international networks, geopolitical reach, and alignment with Saudi Arabia’s 2030 vision of becoming a global leader in critical minerals and industrial technology,” Clark says.
“We are proud to be one of the very few Australian companies selected for this level of strategic backing, and we look forward to working with Sanabil to realise the full potential of Victory and the broader rare earths opportunity.”
As a part of the Vision 2030 program, Saudi Arabia is looking to maximise the mining sector’s potential for production of critical minerals for a global clean energy transition.
The Public Investment Fund (PIF) has directed a large portion of its growth towards mining projects, expanding from roughly $295.86 billion in 2016 to $1.44 trillion in 2024, as listed in last year’s report.
Wholly owned by the PIF of the Kingdom of Saudi Arabia, Sanabil is a financial investment company focused on committing more than US$3 billion in capital each year.
Victory Metals is an Australian explorer, developing rare earth elements and critical minerals projects in Perth, Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Victory Metals
