Meteoric Resources NL (ASX: MEI) shares are getting a lot of attention from investors on Wednesday.
In morning trade, the ASX rare earths stock is up 5.5% to 19.5 cents.
What's going on with this ASX rare earths stock?
The catalyst for today's strong gain has been the release of an update on its flagship Caldeira Rare Earth Project in Brazil.
According to the release, the company has received a non-binding and conditional letter of support from Export Finance Australia (EFA) for indicative financing of up to US$50 million (~A$77 million).
The company notes that the proposed financing is intended to support the development of the Caldeira Project through the use of Australian engineering, procurement, construction, and management contractors.
It believes this strategy will reinforce the established partnership between Australia and Brazil through enhanced supply chain support within the project. In addition, it feels this underscores the Australian Government export credit agency's determination to drive Australian expertise and exports into global rare earths markets.
Solid foundation
Management highlights that the EFA funding support, together with the United States Export Import Bank's (EXIM) US$250 million letter of interest that was received in March 2024, provides a solid foundation for funding of the Caldeira Project.
But the company isn't stopping there. It is continuing active discussions with the Brazilian Development Bank (BNDES) and other Export Credit Agencies together with a number of potential strategic investors to optimise funding solutions for the Caldeira Project.
Commenting on the news, the ASX rare earths stock's managing director, Stuart Gale, said:
We view the Letter of Support from Export Finance Australia as a strong vote of confidence in Meteoric's strategy and capability to become the next major supplier of critical rare earth materials. This endorsement will assist with the broader project financing discussions underway for the Caldeira Project and adds flexibility to our funding strategy.
The recent approval of our Preliminary Environmental Licence without restriction, commissioning of our Pilot Plant and first production of a mixed rare earth carbonate, the Caldeira Project is now positioned as one of the world's most advanced, highest confidence, high-grade rare earth developments. The Project's scale, low operating costs, low capital intensity and rapid path to market stand as clear differentiators and underpin its capability to be an important new, long-term cornerstone of emerging rare earth supply chains.
