Highlights
- 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 US$456M in a debt financing package for the construction and execution phase of the Cowboy State Mine area at the Halleck Creek Project.
- The debt financing will have a repayment term of 15 years under EXIM’s Make More In America Initiative.
- EXIM is the official export credit agency of the U.S. Federal Government with the mission to support U.S. exporters and jobs.
- The Cowboy State Mine area is the first step in a multi-phase approach to developing the Halleck Creek deposit in Wyoming.
- The Halleck Creek deposit has the potential to be a multi-generational rare earths asset for the U.S. The deposit has a 2.34 billion tonne JORC resource, containing 7.48 million tonnes of total rare earth oxides, including key magnet metals like Neodymium (Nd) and Praseodymium (Pr) oxides.1
DENVER, Sept. 24, 2024 (GLOBE NEWSWIRE) — American Rare Earths (ASX: ARR | OTCQX: ARRNF | ADR: AMRRY) (“ARR” or the “Company”) is pleased to announce that its 100% owned subsidiary, Wyoming Rare (USA) Inc. (“WRI”), has received a non-binding Letter of Interest from the Export-Import Bank of the United States (“EXIM”) to provide a debt funding package of up to US$456m for the construction and execution phase of the Cowboy State Mine area (“CSM”) at Halleck Creek. This amount is directly related to the entire initial capex estimate for the CSM as outlined in the March 2024 Scoping Study. The CSM project is the first step in a multi-phased approach to developing the Halleck Creek deposit, a significant rare earths asset for the United States. The EXIM Bank is the official export credit agency of the U.S. Federal Government.
EXIM Bank made the offer based on the preliminary information submitted regarding expected U.S. exports and U.S. jobs to be created through the CSM project and indicated it would be able to consider potential financing of up to US$456M of the project’s costs with a repayment tenor of 15 years under EXIM’s Make More In America Initiative. The transaction offered by EXIM to WRI may be eligible for special consideration under Section 402 of EXIM’s 2019 reauthorization (P.L. 116-94), which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries for opportunities such as this one and/or to advance the comparative leadership of the United States in the Transformational Export Areas.
While the Letter of Interest is not a final commitment, it highlights the strategic importance of the Halleck Creek project. EXIM will now conduct its due diligence before proceeding with any final financing arrangement. The Company will update the market upon finalizing a definitive funding agreement with EXIM.
Chris Gibbs, CEO, commented:
“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., and we are proud to be at the forefront of this transformative initiative. We look forward to collaborating with EXIM and the U.S. Government to bring this critical project to fruition. The potential funding also paves the way to accelerate offtake agreements and attract strategic investors for our subsidiary, Wyoming Rare (USA) Inc.”
Joe Evers, President of WRI, added:
“We are grateful for the recognition and support from EXIM Bank, which will be instrumental in securing the funding needed to fast-track the development of this important project.”
This announcement is authorized for release by the Board of American Rare Earths Limited.
About American Rare Earths Limited:
American Rare Earths (ASX: ARR | OTCQX: ARRNF | ADR: AMRRY) owns Wyoming Rare (USA) Inc. which is focused on the development of the Halleck Creek Project, WY. It also owns La Paz, AZ rare earth deposit. Both can potentially become the largest and most sustainable rare earth projects in North America. The Company is developing environmentally friendly and cost-effective extraction and processing methods to meet the rapidly increasing demand for resources essential to the clean energy transition and U.S. national security. The Company continues to evaluate other exploration opportunities and is collaborating with U.S. Government-supported R&D to develop efficient processing and separation techniques of rare earth elements (REEs) to help ensure a renewable future.
For further information, please contact:
Susan Assadi
Media Relations US
[email protected]
347 977 7125
Beverly Jedynak
Investor Relations US
[email protected]
312 943 1123
1 ASX Announcement 7 February 2024
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5db3e630-5dd7-4b08-9363-28bf98f34b77