Australian Strategic Minerals shares surge on US govt funding plan
Make us a preferred source
Make us a preferred source on Google
The news: Shares in Australian Strategic Minerals have surged on the ASX after the small-cap rare earths explorer won preliminary US government funding for a project in NSW.
The numbers: The company said it has received a letter of interest for a debt funding package of up to USD600 million ($910 million) from the Export-Import Bank of the United States to support construction of its Dubbo rare earths project.
Its shares jumped as much as 30% in early trading on the ASX before settling 16.8% higher at $1.39 each by 11.08am AEDT.
The context: The Australian company is developing its Dubbo rare earths mine and processing plant. It has already secured conditional support of $200 million from Export Finance Australia.
The US and Australia have set up a Critical Minerals Taskforce with resources minister Madeleine King seeking investment support for minerals processing from allied Western nations.
What they said: "The letter of intent represents a material step in ASM’s project funding strategy and is recognition of the strong engagement the company has experienced from government, investors, and industry groups in north America," Australian Strategic Minerals said in a statement to the ASX.
The source: ASX announcement
