Harena Rare Earths Plc (LSE:HREE) shares soared in Wednesday's early deals after it secured up to US$4.84 million of US government-backed funding to accelerate development of its Ampasindava rare earths project in Madagascar.
The agreement with the US International Development Finance Corporation marks DFC’s first direct financial commitment to Ampasindava. Drawdown is already underway, with development work progressing on the ground.
Funding will cover permitting, environmental and social studies, and development of a proof-of-concept pilot plant. These programmes are intended to advance the project towards a definitive feasibility study and, ultimately, a construction decision.
Executive chairman Ivan Murphy described the agreement as “a real turning point” for Ampasindava and an endorsement of its potential as a Western-aligned source of magnet rare earths.
"It represents the first direct financial commitment from the U.S. Government into our project and is a powerful endorsement of Ampasindava's importance as a Western-aligned source of critical magnet rare earths," Murphy said.
"With funding now agreed and drawdown already underway, our team, led by our Executive Technical Director Allan Mulligan, is hard at work on site, and DFC has also indicated its interest in playing a much larger role in financing the Project as it advances towards a construction decision - a hugely encouraging signal for Harena's future funding pipeline. I look forward to updating shareholders shortly with further news on our progress and development work in Madagascar."
DFC has also retained the right to be considered for a larger future financing or investment role, subject to its due diligence and approval processes.
In London, Harena shares were up 24.94% changing hands at 2.41p, having seen as high as 2.78p in early exchanges.
