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Shares in Sunrise Energy Metals (ASX: SRL) are more than 30% higher after the US Government flagged its interest in helping to fund its New South Wales scandium project.
The company told the ASX on Tuesday that the Export-Import Bank of the United States (EXIM) had given the company a letter of interest for up to US$67 million in financing support for the Syerston Scandium Project, which would cover about half the estimated development cost.
The company said the Syerston project contained the world's largest and highest-grade scandium deposit.
The Syerston Scandium Project … has been identified as a candidate for financing for its potential to support development of reliable and secure supply chains for US industry under several EXIM programs, including its Supply Chain Resiliency Initiative and the China Transformational Exports Program. Project debt provided by EXIM is eligible for an attractive repayment term of up to 15 years.
Sunrise Energy Metals said further due diligence would be done by EXIM should the company progress with a formal application for funding.
Company co-chair Robert Friedland said the commitment highlighted the critical nature of scandium supplies.
This Letter of Interest underscores the importance of scandium to the United States, both as a critical component in wireless communications technologies, and advanced alloys supporting the civilian and defence sectors. As a key ally of the United States, Australia's significant endowment of strategic metals positions it to be an important supplier in the future.
The company said on Tuesday that while its feasibility study was progressing well, a substantial increase in contained metal revealed in an update on September 9 meant that more work needed to be done for conversion to an ore reserve estimate and an optimised mine plan.
Sunrise Energy Metals shares were 31.9% higher at $4.42 on Tuesday.
