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Australian Strategic Materials: North American support for Dubbo Project funding builds momentum

Published 26/04/2024, 10:05 am
© Reuters.  Australian Strategic Materials: North American support for Dubbo Project funding builds momentum

Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) has received further interest out of North America to provide funding for the construction and execution of its rare earths and critical minerals Dubbo Project.

ASM has now received a non-binding and conditional Letter of Interest from Canada’s official export credit agency (ECA), Export Development Canada (EDC), to support a direct lending debt funding package of up to A$400 million for the project.

This indicative financial support increases sourcing flexibility and demonstrates the growing confidence in shared financing for the Dubbo Project.

This comes in addition to the A$200 million Letter of Support received from Export Finance Australia (EFA) and the recently announced letter of interest from the Export-Import Bank of the United States for US$600 million (A$923 million)

Increasing support

As a result of ongoing discussions regarding funding for the Dubbo Project’s construction and execution phase, the company has garnered attention from ECAs and other parties across different jurisdictions.

There has been significant interest from government bodies, investors and industry groups in North America in particular, given the strong policy alignment between Australia and North American jurisdictions and the need to establish alternative critical minerals supply chains.

The latest letter of interest, from EDC, is supported by potential equipment and services supply from Canadian companies for the execution phase of the Dubbo Project.

Focused on building strategic partnerships

Australian Strategic Materials managing director and CEO Rowena Smith said: “We are thrilled with the support received to date from prospective financiers for the Dubbo Project, especially this latest letter of interest from Export Development Canada. Our focus has been on building strategic partnerships in North America that support the development of our mine to metals strategy.

“We see the growing strength of those relationships and the momentum in financial support as recognition of the strength of the Dubbo Project and its significance as a reliable, responsible and secure source of critical minerals. We look forward to working with the EDC and progressing with the due diligence and approval process.”

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