Victory Metals (ASX:VTM) has received a letter of interest from the Export-Import Bank of the US (EXIM) for up to US$190 million ($297.32 million) in project financing for the development of the North Stanmore Project in Western Australia.
Under the non-binding letter of interest, the potential debt financing support has a 15-year indicative repayment term.
The financial commitment is subject to standard due diligence and be in compliance with EXIM policies, as well as program, legal and eligibility requirements.
Victory Metals, which has a market capitalisation of $48.18 million, says this establishes the company as one of the few Australian critical mineral developers attracting high-level international government-backed support.
In conjunction, this letter of interest provides an opportunity to access further US government financing through the China and Transformation Exports Program — a mandate for EXIM to help US exporters facing competition from the People’s Republic of China and ensure the US continues to lead in certain export areas.
CEO Brendan Clark says this is a “major” milestone for Victory and a clear signal of the strategic importance of the North Stanmore Project internationally.
“Support from EXIM, especially under the China Transformation Exports Program, elevates our potential as a secure, non-Chinese supplier of critical minerals,” Clark says.
“It is also a powerful endorsement of the technical and geopolitical strength of our project.
“This EXIM letter of interest provides a clear pathway for Victory to access long-term, government-backed funding from one of the most influential export credit agencies in the world.”
The North Stanmore Heavy Rare Earth Element Project has a robust estimated net present value of $1.212 billion post-tax with an internal rate of return of 52%. The project has a 31-year mine life with an 8 million tonnes per year throughput.
As Mining.com.au previously reported, Victory said it is uniquely positioned to benefit from the recent rare earths market shift, having demonstrated recovery of a suite of strategic and critical minerals targeted in the recent executive order issued by US President Trump.
Earlier this year, Trump issued two executive orders to incentivise the processing of critical minerals. At the same time, China’s Ministry of Commerce and the General Administration of Customs jointly imposed immediate restrictions on the export of dysprosium and terbium — which are critical for high-performance magnets used in military technologies and offshore wind turbines.
Victory Metals’ projects contain a suite of critical minerals including scandium and rare earths such as praseodymium, neodymium, dysprosium, and terbium.
These rare earths are considered crucial for modern technology and green energy applications. According to the US Geological Survey, rare earths are used in cellphones, computer hard drives, electric vehicles, and flat screen monitors and televisions.
Rare earths are also used in defence applications such as electronic displays, guidance systems, and lasers, as well as radar and sonar systems.
Write to Aaliyah Rogan at Mining.com.au
Images: Victory Metals
