Australian exploration company Victory Metals has secured a letter of interest (LOI) from the Export-Import Bank of the United States (EXIM) for up to $190m in debt financing support to develop its North Stanmore heavy rare earths, scandium and hafnium project in Western Australia (WA).
The non-binding LOI has an indicative repayment term of 15 years. It also opens the possibility for Victory Metals to tap into further US Government financing through the China and Transformational Exports Program.
The final financing commitment is contingent upon standard due diligence and compliance with EXIM’s policies, as well as legal and eligibility requirements.
Victory Metals CEO Brendan Clark said: “This is a major milestone for Victory and a clear signal of the strategic importance of our project not only to Australia but to our allies abroad. Support from EXIM, especially under the China and Transformational Exports Programme, elevates our potential as a secure, non-Chinese supplier of critical minerals. It is also a powerful endorsement of the technical and geopolitical strength of our project.”
The LOI may receive special consideration under Section 402 of EXIM’s 2019 reauthorisation.
EXIM’s 2019 reauthorisation encourages the bank to counteract competitive export support from China and other nations.
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By GlobalDataThis provision aims to bolster US leadership in sectors vital to economic and national security, such as rare earths and advanced materials.
Victory Metals’ North Stanmore project may benefit from this directive, which seeks to promote ethical, non-Chinese sources of critical materials.
With the backing of EXIM, Victory Metals is in a stronger position to expedite negotiations with US and international downstream partners including major original equipment manufacturers and defence-aligned industries.
Clark added: “This EXIM Letter of Interest provides a clear pathway for Victory to access long-term, government-backed funding from one of the most influential export credit agencies in the world. We look forward to continuing to collaborate with EXIM as we move towards full project funding.”
In January 2025, Victory Metals unveiled a substantial upgrade to the mineral resource estimate for its North Stanmore project.
