Northern Minerals Ltd (ASX: NTU) shares are having another strong session.
In morning trade on Tuesday, the ASX rare earths stock is up 19% to 6.4 cents.
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Why is this ASX rare earths stock rocketing?
Investors have been scrambling to buy this rare earths developer's shares after it received some great news out of the United States.
This morning, Northern Minerals announced that it has received non-binding and conditional letters of support from key Australian and US government agencies. These are Australia's Export Finance Australia (EFA) agency and the Export-Import Bank of the United States (EXIM).
They are backing the financing and development of the company's 100%-owned Browns Range Heavy Rare Earths Project in the East Kimberley region of Western Australia.
According to the release, the ASX rare earths stock advised that the EXIM letter of interest states that it would be able to consider financing up to US$230 million. This is in cooperation with EFA.
Management advised that this support was received following the meeting between Anthony Albanese and Donald Trump. At that meeting, the two leaders reaffirmed Australian and the United States of America's desire to increase collaboration to advance the development of independent critical minerals. This includes the heavy rare earths present at Browns Range.
Commenting on its support, EXIM's chair, John Jovanovic, said:
EXIM's Letter of Interest to Northern Minerals reflects our commitment to advancing projects that strengthen US national security, enhance supply chain resilience and revitalise domestic manufacturing. By fostering collaboration between American industry and Australian mining initiatives, EXIM is helping deliver on President Trump's vision to bolster America's industrial innovation, create high-quality US jobs and ensure reliable access to the critical minerals that power key American industries and technologies.
What is the Brown Range project?
The company highlights that Browns Range contains one of the world's most significant, near-development mineral resources of the heavy rare earths dysprosium and terbium (Dy/Tb).
Dy/Tb are critical minerals required for use in strategic applications such as clean energy technologies, advanced defence systems, medical applications, humanoid robotics, automotive applications, and consumer electronics.
Commenting on the news, the company's managing director and CEO, Shane Hartwig, said:
We are delighted with and appreciative of the non-binding support from these two important government agencies, which underscores how committed Australia and the US are to assist development of new, non-Chinese supply chains of critical minerals such as Dysprosium and Terbium.
Northern Minerals has recognised the potential for Browns Range to become a foundation block of a safe, secure and sustainable Australian rare earths supply chain. The Definitive Feasibility Study into Browns Range, completed just last month, confirms this globally significant opportunity. Browns Range is one of the most advanced HREE project in the world outside of China, ideally positioning Northern Minerals to capitalise on a forecast Dy/Tb supply deficit.
