Sydney, Australia – 24 September 2024 | American Rare Earths Limited (ASX: ARR | OTCQX: ARRNF | ADR: AMRRY) (“ARR” or “the Company”) is pleased to announce that its wholly 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) for up to US$456 million in debt financing. This funding will support the construction and execution phase of the Cowboy State Mine (CSM) area at the Halleck Creek Project in Wyoming, marking a critical step in the development of one of the largest rare earth deposits in North America.
Highlights:
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Funding Potential: EXIM Bank has issued a non-binding Letter of Interest to provide up to US$456 million in debt financing for the Cowboy State Mine area of the Halleck Creek Project.
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Strategic Importance: The Halleck Creek deposit contains a 2.34 billion tonne JORC resource, holding 7.48 million tonnes of total rare earth oxides, including Neodymium (Nd) and Praseodymium (Pr), two key magnet metals essential for clean energy technologies.
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EXIM Bank Support: The financing will be part of EXIM’s “Make More In America” initiative, which seeks to support U.S. jobs and exports while reducing dependence on foreign supply chains, particularly in critical sectors like rare earths.
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15-Year Repayment Term: The debt financing is expected to have a repayment term of 15 years, offering long-term financial support for the project’s initial capital expenditure.
Chris Gibbs, CEO of American Rare Earths, stated: "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 Wyoming Rare (USA) Inc., 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."
Strategic Significance:
The Halleck Creek Project is a crucial part of ARR’s strategy to develop a sustainable and secure supply of rare earth elements, which are critical to the global clean energy transition and U.S. national security. The deposit’s large resource base positions it as a key future supplier of rare earths, essential for electric vehicles, wind turbines, and other technologies vital to reducing carbon emissions.
While the Letter of Interest is non-binding and not a final commitment, it represents a major endorsement of the strategic importance of the project. EXIM will now begin its due diligence process before finalising any definitive financing arrangement.
Jane Morgan
Investor and Media Relations
[email protected]
About us:
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 US national security. The Company continues to evaluate other exploration opportunities and is collaborating with US Government-supported R&D to develop efficient processing and separation techniques of rare earth elements (REEs) to help ensure a renewable future.
Contact details:
Jane Morgan
Jane Morgan Management
Investor and Media Relations
[email protected]