Why are shares in this junior critical minerals company surging more than 20%?

This junior developer has received a strong endorsement from a US government agency for its antimony project.

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Key points

  • Locksley Resources has received interest from the US government in financing its antimony project.
  • The company recently produced antimony metal from ore at the Mojave project.
  • More formalised financing talks will now begin.

Locksley Resources Ltd (ASX: LKY) shares took off on Monday morning after the company announced a US federal agency could provide up to US$191 million in financing for its Californian antimony project.

The company, which was valued at just less than $100 million at the close of trade on Friday, said in a statement to the ASX that the US Export-Import Bank (EXIM) had issued a letter of interest indicating the potential to supply the funding.

EXIM, Locksley said, is the official export credit agency of the US, "tasked with strengthening domestic industrial resilience and reducing foreign supply dependence in strategic sectors''.

Locksley shares were trading 23.2% higher at 42.5 cents early on Monday. The stock has traded in a wide range this year, from as low as 1.4 cents to as high as 69 cents.

Encouraging first step

The company said the potential financing was also a first step in a broader US government funding pathway, which could open up access to programs funded by the US Department of War.

Locksley said its Mojave project aligned with US strategic interests.

It said in its statement to the ASX:

In light of the recent November 2025 U.S.–China trade agreement whereby China has suspended new rare-earth/critical minerals export controls, and the U.S. has publicly reaffirmed its support for Western based critical mineral supply chains, the Mojave Antimony Project is uniquely positioned to deliver a low risk, U.S. hosted, anti-dependent on China supply solution.

Locksley said it had recently cast its first American-made antimony ingot using feedstock from the Mojave project, with the metal processed entirely in the US.

The company said:

This achievement validated the company's mine-to-metal business model and provides the foundation for commercial scaling under the Defense Production Act and Inflation Reduction Act frameworks.

The company stated that its project also aligns well with the critical minerals framework recently signed between Australia and the US, which aims to reduce reliance on China for critical minerals.

Key meetings imminent

Locksley managing director Kerrie Matthews said the EXIM announcement was a strong endorsement of the company's plans.

She went on to say:

The letter of interest provides a foundation to progress formal financing discussions while advancing our downstream and offtake plans. With our 100% American made antimony ingot now produced, we are proving Locksley's capacity to deliver the next generation of U.S critical mineral supply chains.

Locksley said it will now progress a formal application with EXIM, triggering due diligence and underwriting processes.

Locksley executives will also be attending key meetings in Washington DC in mid-November to advance discussions around the project.

Motley Fool contributor Cameron England 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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