ASX-listed Meteoric Resources has reported that its flagship Caldeira rare earth project, in Brazil, has received a nonbinding and conditional letter of support from Export Finance Australia (EFA) for indicative financing of up to $50-million.

The company says 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 explains that this strategy will reinforce the established partnership between Australia and Brazil through enhanced supply chain support within the project.

This EFA funding support, together with the US Export Import Bank’s (EXIM’s) $250-million letter of interest received in March 2024, provides a solid foundation for funding of the Caldeira project, says Meteoric.

Meteoric adds that it also continues active discussions with the Brazilian Development Bank and other export credit agencies together with a number of potential strategic investors to optimise funding solutions for the Caldeira project.

The company says this letter of support underscores the Australian government export credit agency’s determination to drive Australian expertise and exports into global rare earths markets, while also contributing to supply chain diversification.

Meteoric notes that it will continue to progress discussions with the EFA and other strategic partners as part of its broader funding strategy for the Caldeira project.

“We view the letter of support 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 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,” says MD Stuart Gale.