American Rare Earths Limited (ARR) has announced a significant development in its Halleck Creek Project, with its subsidiary Wyoming Rare (USA) Inc. receiving a non-binding Letter of Interest from the Export-Import Bank of the United States (EXIM) for up to $456 million in debt financing.
This potential funding is earmarked for the construction and execution phase of the Cowboy State Mine (CSM) area at Halleck Creek, Wyoming.
The Halleck Creek deposit is one of North America’s largest rare earth resources, boasting a 2.34 billion tonne JORC resource containing 7.48 million tonnes of total rare earth oxides.
Notably, the deposit includes significant amounts of Neodymium and Praseodymium, crucial elements for clean energy technologies.
EXIM’s offer comes under its “Make More In America” initiative, aimed at bolstering U.S. jobs and exports while reducing dependence on foreign supply chains in critical sectors.
The proposed financing includes a 15-year repayment term, providing long-term support for the project’s initial capital expenditure.
Chris Gibbs, CEO of American Rare Earths, highlighted the significance of this development: “This Letter of Interest from EXIM Bank is a significant milestone, highlighting the U.S. Government’s commitment to securing a robust domestic rare earth supply chain.”
He added that the Halleck Creek project is poised to become a key, multi-generational resource for the United States.
Joe Evers, President of Wyoming Rare (USA) Inc., expressed gratitude for EXIM’s support, noting its importance in fast-tracking the project’s development.
While the Letter of Interest is non-binding, it represents a major endorsement of the project’s strategic importance.
EXIM will now commence its due diligence process before finalising any definitive financing arrangement.
This potential funding not only supports the development of a crucial rare earth resource but also aligns with broader U.S. efforts to secure domestic supply chains for critical minerals.
As the global demand for rare earth elements continues to grow, particularly in clean energy and high-tech industries, the Halleck Creek Project could play a pivotal role in ensuring a stable and sustainable supply for the United States.
