Meteoric Resources has secured a non-binding, conditional letter of support (LoS) for financing of up to $50m (A$74.71m) from Export Finance Australia (EFA) to back its Caldeira rare earth project in Brazil.
The funding is aimed at enabling the engagement of Australian engineering, procurement, construction, and management contractors for the Caldeira development.
It is expected to strengthen cooperation between Australia and Brazil by bolstering supply chain support within the Caldeira project.
In addition to the support from EFA, the Caldeira project obtained a $250m letter of interest from the US Export-Import Bank in March 2024, establishing a strong base for the project’s financing.
Meteoric remains in ongoing discussions with the Brazilian Development Bank, other export credit agencies and potential strategic investors to optimise the funding structure for Caldeira.
According to the company, this LoS underscores the commitment of Australia’s export credit agency to promoting exports in the global rare earths sector, while helping to strengthen supply chain diversification.
The company plans to continue its engagement with EFA and other partners as part of its broader funding strategy.
Meteoric managing director Stuart Gale said: “We view the LoS from EFA 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 under way 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 Caldeira project consists of 77 licences, collectively covering more than 193km² in the south-west of Minas Gerais State, Brazil, near the city of Poços de Caldas.
Last June, MTM Critical Metals signed a non-binding memorandum of understanding with Meteoric to improve the processing of mixed rare earth carbonate from the latter’s Caldeira rare earth project.
