Export-Import Bank considers funding Locksley's Mojave antimony project
Locksley recently produced the 1st 100% American-made antimony ingot in decades
Rowan Dunne
US-focused Australian antimony miner Locksley Resources Ltd OTCMKTSLKYRF ASXLKY FRAX5L just received a promising letter of financing interest from an American government-backed credit agency.
On Monday morning Australia time, the company announced that the Export-Import Bank of the United States was considering funding Locksley’s Mojave project with up to US$191 million.
The mission of EXIM is to help finance and facilitate exports of American goods and services, particularly where private financing is not available. It provides loans, export credit insurance and working capital financing with the aim of supporting small business and emerging sectors in the country while promoting national security interests.
“The letter of intent provides a foundation to progress formal financing discussions while advancing our downstream and offtake plans,” said chief executive Kerrie Matthews.
Nothing is written in stone, additional steps required
Despite the positivity of receiving the memo, no deal has been finalized yet. Locksley will need to satisfy underwriting criteria and undergo a multi-faceted review before funds start flowing. If funding is obtained, the junior miner will have a repayment tenor of 10 years. Locksley could still potentially face delays or rejection due to the rigorous due diligence process of the EXIM.
Nonetheless, Matthews’ enthusiasm is shared by Drew Horn, Chief Executive Officer of GreenMet. This company recently formed a partnership with Locksley to help secure funding for Mojave from EXIM and other potential financiers. Their efforts appear to have paid off to a certain extent. The Department of Defense (DoD), Department of Energy and the Development Finance Corporation are other targets of the collaboration.
GreenMet describes itself as an American conduit between private capital, government and strategic mineral innovation. Horn is a former advisor to the White House on critical minerals.
“The fact that EXIM’s engagement aligns with current White House priorities underscores how strategically important Locksley’s Mojave Project has become,” stated Horn in an ASX announcement from Locksley.
The development follows Locksley successfully producing the first 100 per cent American made antimony ingot in over 20 years. This achievement likely helped prompt the letter of financing interest from the U.S. export credit agency. It represents a proof of concept milestone at the California project. Additionally, Locksley produced a rich antimony (Sb) concentrate from the site in early October. Surface samples have yielded up to 17 per cent Sb.
“The combination of EXIM support and the successful production of a 100 per cent American made antimony ingot demonstrates tangible progress toward full U.S. supply chain independence,” Horn added.
Recent government intrigue in companies with major antimony projects and early-stage sites like Mojave could potentially extend to other junior operators in the sector with proven Sb mineralization on their properties. Military Metals Corp CNSXMILI OTCMKTSMILIF FRAQN90, NevGold Corp CVENAU OTCMKTSNAUFF FRA5E50 and Churchill Resources Inc CVECRI OTCMKTSCRICF are considerable prospects.
$LKYRF | $LKY NEWS!! This is really big deal, Locksley Resources Receives up to $191M USD Potential Support from EXIM Bank “EXIM Bank” Export–Import Bank of the United States is the official export credit agency of the United States government. Website: EXIM.gov Show more
$LKYRF | $LKY Very interesting play here. Mojave project literally right next to Dateline Resources $DTREF $DTR which has been getting serious attention lately from investors. Also right next to $MP valued at a $11B market cap DD article by @DegenMagazine from yesterday attached
Read more: NevGold Expands Gold-Antimony Potential at Limousine Butte in Nevada
Locksley employs heli-survey contractor for Mojave
Late last month, the Aussie junior selected Colorado’s EDCON-PRJ to complete an extensive helicopter survey assessing antimony and rare earths at Mojave.
Locksley says it is expected to deliver up to a five-fold increase in data density in comparison to the historical dataset from the United States Geological Survey.
“Undertaking this high-resolution survey builds on the foundational datasets which Locksley is acquiring to fast-track exploration activities across Mojave,” said Matthews on social media.
Information yielded will inform the next phase of drilling at the development-stage California site.
In addition to antimony, a highly sought after critical mineral at the moment, Mojave is prospective for rare earth elements. The El Campo rare earths prospect sits only 1.4 kilometres from the Mountain Pass operation run by MP Materials Corp NYSEMP FRA55H0.
Mountain Pass is a vital American asset for green tech and national security. It is estimated to have over 24 years of life remaining. Apple Inc NASDAQAAPL and the DoD have collectively sunk almost a billion into it.
Logistical synergies could be beneficial for Locksley in the long term. Rock chips at El Campo have returned up to 12.1 per cent rare earth oxides.
The recent discovery of a high-grade silver (Ag) prospect on the property is also worthy of note. “Hendricks” has returned up to 219 grams per tonne Ag, as specified by the company on Oct. 31.
Read more: NevGold targets U.S. critical mineral supply chain with new antimony-gold find
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