Harena Rare Earths (HREE ) has signed a project development funding agreement with the United States International Development Finance Corporation, the U.S. Government's international investment arm.

The signing of the PDFA is a transformational milestone for Harena, marking the DFC's first direct financial commitment to its Ampasindava rare earths project in Madagascar, and formalising a partnership that the company believes will be central to unlocking the project's development towards production.

Under the terms of the PDFA, the DFC has committed to fund a substantial share of the agreed budget of project development costs, with all associated terms now settled and drawdown of the first tranche of funds already underway. 

The DFC money is earmarked for permitting, environmental and social studies, and the development of the company's proof-of-concept pilot plant, accelerating the pathway to the definitive feasibility study and, ultimately, a construction decision.

Under the terms of the PDFA, the DFC has also secured rights to be considered for future direct financing or investment in the project, underlining the potential for a significantly deeper funding relationship as Ampasindava advances towards a construction decision.

"The signing of this project development funding agreement with DFC is a hugely exciting milestone for Harena and a real turning point in the development of the Ampasindava project,” said Ivan Murphy, executive chairman of Harena.

“It represents the first direct financial commitment from the U.S. Government into our project and is a powerful endorsement of Ampasindava's importance as a Western-aligned source of critical magnet rare earths.” 

 

View from Vox

 

The PDFA follows an extensive due diligence and engagement process with the DFC and represents a major endorsement of Ampasindava, both in terms of its importance as a strategic resource, and as a potentially economically viable development. At this point the DFC has committed up to US$4.84 million towards the agreed project development budget for Ampasindava, but when it comes to further financing, the Americans will surely be in a prime position to act as cornerstone.

 

To watch Ivan Murphy interviewed about the DFC on the Vox channel, click here