Guess which ASX mining stock is rocketing 39% on $920m US govt funding news

Big things could be happening in the US for this emerging mining stock.

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The Australian Strategic Materials Ltd (ASX: ASM) share price is rocketing higher on Thursday.

In morning trade, the ASX mining stock is up 39% to $1.65.

Why is this ASX mining stock rocketing?

Investors have been fighting to get hold of the company's shares this morning after it made a major announcement.

According to the release, the critical metals focused integrated materials business and emerging mine to manufacturer has received a non-binding and conditional letter of interest (LOI) from the Export-Import Bank of the United States (US EXIM).

The US EXIM is the official export credit agency of the United States federal government.

Australian Strategic Materials advised that the LOI is for the provision of a debt funding package of up to US$600 million (A$923 million) for the construction and execution phase of the Dubbo rare earths and critical minerals project.

The release notes that US EXIM's support is linked to the potential US content (equipment, goods and services) to be supplied in the construction phase of the Dubbo project and the key strategic role the project can play in the critical minerals supply chain.

The LOI is subject to completion of due diligence by US EXIM and Australian Strategic Materials obtaining all necessary approvals for the Dubbo Project.

The ASX mining stock's CEO, Ms Rowena Smith, was very pleased with the news. She said:

The Dubbo Project is a globally significant rare earths and critical minerals asset, well positioned to support the joint objective of Australia and the US to develop and expand reliable, responsible and secure global access to critical minerals.

We are delighted to receive this letter of interest from US EXIM following extensive collaboration with multiple government and industry stakeholders in the US and look forward to building on the relationships we have established in this jurisdiction.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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