US weighs $190M for Locksley’s antimony

Australia’s Locksley Resources (ASX: LKY) has received a letter of interest (LOI) from the U.S. Export-Import Bank (EXIM) for a potential financing of $191 million in support of its antimony project in California.

Locksley’s Mojave project about 100 km southwest of Las Vegas is host to a high-grade antimony prospect with historical samples grading up to 46%. The property lies next to the only active U.S. rare earths mine — MP Materials’ (NYSE: MP) Mountain Pass.

Antimony is a vital ingredient in military applications as well as batteries and semiconductors. Currently, the U.S. has no domestic source of antimony production and relies heavily on imports from China.

With the Mojave project, Locksley aims to establish the first domestic mine-to-market supply chain for antimony. In August, the Australian explorer engaged Washington, DC-based advisory group GreenMet to support the advancement of its project by positioning it within key U.S. government initiatives under the Defense Production Act, Inflation Reduction Act and Department of Energy programs.

Shares in Locksely Resources gained 18% to close on Monday at A40¢ apiece in Sydney, valuing the company at more than A$113 million  (US$74 million).

‘Cornerstone step’

“This LOI represents a cornerstone in Locksley’s engagement with U.S. federal agencies and paves the way for detailed due diligence and underwriting to advance a comprehensive financing package for the Mojave project,” Kerrie Matthews, managing director and CEO of Locksley, said in a release.

She added that the LOI provides a foundation to progress formal financing discussions while advancing the company’s downstream and offtake plans. In October, Locksley produced the country’s first domestic antimony ingot in decades when Hazen Research in Colorado refined ore from Mojave. 

“EXIM’s letter of interest represents more than just financial support,” GreenMet CEO Drew Horn, a former White House advisor on critical minerals, said in the release. “It reflects a coordinated U.S. government directive to rebuild domestic critical minerals capability.”