Harena Rare Earths (HREE ) has received US$480,000 in funding to date from the US International Development Finance Corporation under its US$4.84 million agreement, and has recently submitted a drawdown request for a further US$600,000.
A further request for US$810,000 is likely to be submitted in January 2027.
The money will be used to move forward with work at the Ampasindava ionic clay rare earth project in Madagascar.
In addition, the relationship extends beyond the initial development funding. The existing PDFA also provides for DFC’s consideration of potential subsequent debt or equity financing currently projected at up to US$67 million.
Following the formalisation of its exploitation permit, Harena is now advancing the environmental, technical and commercial work required to advance its completed pre-feasibility study towards a definitive feasibility study and a future construction decision.
A bulk sampling programme is underway and sample material is being prepared for metallurgical testwork to optimise the processing flowsheet, establish pilot-plant design criteria and produce representative concentrate for potential offtake partners. Testwork results are expected in the first quarter of 2027.
Further updates on technical mobilisation, bulk testwork, concentrate evaluation, environmental approvals, pilot development and DFS progress will be reported as milestones are reached.
As its stans, the life of mine for Ampasindava stands at 20 years. Pre-production capital costs are of the order of US$142 million, and the project has a post-tax NPV at a 10% discount rate of US$249.6 million. The internal rate of return is a robust 30%.
“U.S. government development funding and the formalisation of our exploitation permit represent a transformational change for Harena,” said Ivan Murphy, executive chairman of Harena.
“Our financing relationship with the DFC extends beyond development capital, broadening our connections across the U.S. critical minerals sector and its participants. At the same time, recent significant industry M&A activity is also demonstrating the strategic value of securing ionic clay resources. With U.S. government support and our mining permit in place, we are focused on accelerating development. Building on our completed PFS, we are advancing the environmental, metallurgical and engineering work required for the DFS and pilot plant. Our stakeholders can now expect regular news flow, beginning shortly with technical mobilisation and bulk sampling, followed by test work results, concentrate production, environmental approvals and commercial progress as milestones are delivered.”
View from Vox
Recently, significant industry merger and acquisition activity around ionic clay rare earths projects has highlighted the significant value that these types of projects can deliver. Both Lynas and USA Rare Earths have transacted in high value deals, and there’s no reason to think that Harena can’t follow suit. Progress to date has been rapid, and is going to continue apace as work on the DFS continues. Meanwhile, the support of the US government for the project is only too clear, as money has already been forthcoming and more is on the way. There is a lot to like here.