American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) non-executive director Mel Sanderson joined Proactive to discuss a recent milestone for the company - the receipt of a non-binding letter of interest for a US$456 million financing package from the Export-Import Bank of the United States (EXIM).
The funding would cover the total cost of the construction of the Cowboy State Mine at the company's Halleck rare earths project in Wyoming.
Proactive: You're here with some very significant news for the company. The company has received a non-binding letter of interest from the Export-Import Bank of the US. This is for funding that the company is seeking to take its project to the next level. Can you talk to investors a little bit about what's come up here?
Mel Sanderson: Absolutely. It's a very gratifying moment for us. We have received what amounts to a validation of our vision and our potential as a strategic resource for the US. The Export-Import Bank of the United States has provided a non-binding letter of interest for $456 million. That represents the entire currently envisioned cost of building the mine and the processing facility to get us to the concentrate stage.
It’s very exciting and puts us in great company. There haven’t been many of these letters awarded. Three other companies worth mentioning are Australian Strategic Materials, Perpetua, and Neo, but none received funding to this level.
The Export-Import Bank of the US is focused on projects that can contribute to the rare earths supply in the US. That must be significant for you.
100%. They've received a mandate from Congress and the White House to build an infrastructure around clean energy and clean development in the US. So, the vision for Washington is essentially “mines to magnets,” and we want to be a key element in that strategy. This endorsement from EXIM sends a clear signal that we have the potential to contribute.
What does this funding mean for the project moving forward? What are the next steps?
We’re already preparing the necessary studies for our environmental permits. It's important to note that the Cowboy State Mine will be built on Wyoming state land, so the permitting process will be significantly quicker. The state of Wyoming also gave us a $7 million grant in matching funds to help us move forward as quickly and correctly as possible.
It sounds like this letter really validates what you've been saying about the project. What are your thoughts on where this puts the company?
Absolutely. We're hopeful that this letter will give private investors the confidence to invest in our project. This was the purpose of our recent reorganization—to position Wyoming Rare as a great investment opportunity at the project level, especially for American investors. We believe this EXIM letter will open the door for that.
Quotes have been lightly edited for clarity and style