Australian Strategic Materials Ltd (ASX:ASM) continues to progress financing arrangements for the development of the Dubbo Project in Central West New South Wales from which its aims to provide a sustainable and stable supply of high purity and clean critical metals.
The 100%-owned project is a potential long-term resource of rare earths, zirconium, niobium and hafnium which are critical for a diverse range of advanced and clean technologies.
Technical due diligence progress
Technical due diligence under a Framework Agreement with an Investing Partnership of Korean private equity firms has advanced with considerable effort made by both parties.
Due to COVID-19 travel restrictions between Australia and Korea and on travel within Australia, and the extensive scope of the technical due diligence, the due diligence has not been completed by Q3 2021 as initially anticipated and continues to be progressed.
ASM managing director David Woodall said: "We continue to progress the financing of the Dubbo Project, the development of which will provide an alternate, sustainable, secure and stable supply of high purity and clean critical metals directly into the Korean manufacturing sector.”
ANZ is debt financial advisor
In addition, and separately, to facilitate the financing of the project, ASM has appointed Australian and New Zealand Banking Group Limited (ANZ) as debt financial advisor.
This appointment is based on ANZ’s experience and strong relationships in Australia and Korea, including with Australian and Korean export finance agencies.
The ANZ appointment is both necessary and timely as ASM is engaging with those agencies as part of the financing of the Dubbo Project.
“The Framework Agreement is one part of the financing of the Dubbo Project, ANZ’s appointment facilitates further engagement with debt providers that include Australian and Korean export finance agencies,” Woodall said.
“We look forward to updating the market as we continue to progress the transaction.”
Shares higher
Shares today have been as much as 11% higher to A$10.98 while the company's market cap before opening today was approximately A$1.38 billion.