US — American Rare Earths Limited (ASX: ARR) has announced a significant development in its efforts to establish a domestic rare earth supply chain in the United States.
The company’s wholly-owned subsidiary, Wyoming Rare (USA) Inc., has received 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 the Halleck Creek Project in Wyoming.
The project is poised to become one of the largest rare earth deposits in North America, with a 2.34 billion tonne JORC resource containing 7.48 million tonnes of total rare earth oxides.
The proposed financing package includes several notable features:
- A 15-year repayment term, providing long-term support for the project’s initial capital expenditure
- Alignment with EXIM’s “Make More In America” initiative, which aims to bolster U.S. jobs and exports while reducing dependence on foreign supply chains
- Focus on critical rare earth elements, including Neodymium (Nd) and Praseodymium (Pr), which are essential for clean energy technologies
The Halleck Creek Project is crucial to American Rare Earths’ strategy of developing a sustainable and secure supply of rare earth elements.
These materials are vital for the global clean energy transition and U.S. national security.
Chris Gibbs, CEO of American Rare Earths, emphasised 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. The Halleck Creek project is set to become a key, multi-generational resource for the U.S.”
While the Letter of Interest is non-binding and not a final commitment, it represents a major endorsement of the project’s strategic importance.
EXIM will now begin its due diligence process before finalising any definitive financing arrangement.
The potential funding is expected to accelerate offtake agreements and attract strategic investors for Wyoming Rare (USA) Inc., further solidifying the project’s position in the U.S. rare earth market.
As the global demand for clean energy technologies continues to rise, the development of domestic rare earth resources like the Halleck Creek Project becomes increasingly critical.
This financial backing from EXIM Bank marks a significant step forward in establishing a robust and sustainable rare earth supply chain within the United States.
