Victory Metals receives $190m EXIM LOI for North Stanmore Rare Earth Project

Why Is Victory Metals’ North Stanmore Project Attracting Global Strategic Support?

Victory Metals Limited, listed on the Australian Securities Exchange under the ticker VTM, has reached a pivotal moment in its journey toward becoming a globally recognised critical minerals producer. The company has secured a Letter of Interest from the Export-Import Bank of the United States (EXIM), outlining a potential US$190 million (approximately A$292 million) debt facility to support development of its North Stanmore Heavy Rare Earth Project in Western Australia. This financial expression of interest signals confidence in Victory’s capacity to deliver a long-term, non-Chinese supply of rare earth elements, scandium, and hafnium.

The proposed funding is aligned with the US China and Transformational Exports Program (CTEP), which seeks to reduce reliance on Chinese supply chains for strategic commodities. This initiative positions Victory Metals as a partner in reshaping global rare earth sourcing frameworks, with direct implications for Western industries reliant on magnet-based technologies used in electric vehicles, defence systems, and renewable energy infrastructure.

What Sets the North Stanmore Rare Earth Project Apart?

The North Stanmore Project is strategically located near Cue, Western Australia, with sealed road access through the Great Northern Highway. This logistical advantage complements the project’s geological appeal. Situated within a 100%-owned tenement area, the North Stanmore deposit is the centrepiece of Victory Metals’ development pipeline. It aims to establish a sustainable and low-cost supply of heavy rare earth elements enriched in magnet feedstocks, including neodymium and praseodymium.

The March 2025 Scoping Study validated the economic strength of the project, underscoring its potential to become a cornerstone in Western critical mineral strategies. Victory Metals anticipates this development will catalyse downstream partnerships with defence and clean tech sectors seeking secure and ethical supply chains.

How Strong Are the Project Economics in the Scoping Study?

Victory Metals’ Scoping Study presented robust economics across three market pricing assumptions for NdPr oxide. In a conservative scenario using Adamas Intelligence’s forecast, the post-tax net present value was assessed at A$1.212 billion, with an internal rate of return of 52%. Under the Asian Metal Market spot price of US$62/kg, the post-tax NPV stood at A$711 million, delivering a 36% IRR. Using Adamas’ 10-year historical average of US$82/kg, the post-tax NPV increased to A$868 million with a 41% IRR.

The project’s proposed throughput rate is 8 million tonnes per annum, enabled by shallow mineralisation and favourable terrain. Capital expenditure requirements are estimated at A$337 million, including a 30% contingency margin. Operating expenses are projected at approximately A$25.5 per run-of-mine tonne, offering compelling long-term cost competitiveness over the planned 31-year mine life.

What Does the Mineral Resource Estimate Say About Long-Term Potential?

In January 2025, the company announced a significant update to its Mineral Resource Estimate, increasing the total resource to 247.5 million tonnes at 520 ppm Total Rare Earth Oxide. Importantly, 72% of the resource—equivalent to 176.5 million tonnes—has been classified under the Indicated JORC category. This upgrade solidifies North Stanmore as the largest Indicated Mineral Resource among Australia’s heavy rare earth-dominant deposits.

A high-grade near-surface zone comprising 53 million tonnes at 1,012 ppm TREO further strengthens the project’s development case. The project also benefits from a consistently high Heavy Rare Earth Oxide to Total Rare Earth Oxide ratio of 38% in the Indicated category. With additional value stemming from scandium and hafnium enrichment, North Stanmore’s long-term value proposition is reinforced across multiple downstream markets.

The deposit covers ten tenements with a cumulative strike length of 13.5 kilometres. Metallurgical testing has demonstrated 94% recovery rates for magnet rare earth oxides, providing assurance that Victory’s future output will meet stringent industrial quality benchmarks.

What Does the EXIM Letter of Interest Mean for Project Financing?

The Letter of Interest from EXIM provides non-binding indicative financing terms with a 15-year repayment structure. While it remains subject to due diligence, eligibility criteria, and compliance with EXIM’s legal and policy framework, the LOI acts as a powerful endorsement of Victory Metals’ strategic direction.

According to CEO Brendan Clark, the EXIM interest reinforces the project’s geopolitical significance and elevates its attractiveness to US-aligned markets seeking to diversify away from China. This support could open further funding pathways through programs such as the US International Development Finance Corporation and amplify Victory’s influence in emerging global supply networks.

The presence of government-backed interest provides Victory with greater leverage in offtake negotiations and joint venture discussions. The company expects increased engagement with major original equipment manufacturers, defence-sector stakeholders, and renewable energy groups seeking reliable rare earth supplies.

How Is the Market Responding to Victory Metals’ Developments?

Investor sentiment towards Victory Metals has strengthened following the EXIM announcement. The company’s shares are currently trading at A$0.465, reflecting a gain of over 106% from its 52-week low. While still about 14% below the 52-week high of A$0.545 recorded in September 2024, the upward price action and trading volumes indicate increased institutional interest in the stock.

Victory Metals’ current market capitalisation stands at approximately A$52 million. Ownership data reveals that individual insiders hold 21.1% of shares, while institutional investors hold around 1.08%. The strong insider holding indicates internal confidence in the company’s strategic direction.

Forecasts from analysts suggest a 12-month target of A$0.572, with longer-term projections rising to A$1.14 over a five-year horizon. This implies a five-year upside potential of nearly 160%, underpinned by geopolitical tailwinds and favourable project economics.

Expert Perspective: Is Victory Metals Emerging as a Critical Mineral Powerhouse?

Experts view Victory Metals as a high-potential candidate to become a cornerstone in the emerging Western-aligned rare earth supply ecosystem. The combination of a low-cost development model, high-grade HREEs, metallurgical efficiency, and supportive geopolitical environment places the North Stanmore Project in a league of its own.

Industry analysts believe the EXIM backing is more than a financial signal—it represents a broader strategic alignment between resource development and global security interests. With near-surface mineralisation enabling scalable throughput and a substantial Indicated resource base, North Stanmore is expected to move quickly toward final investment decision and downstream integration.

Victory Metals has positioned itself not just as a miner but as a critical minerals partner to governments and industries facing a global supply chain transition. Its success could serve as a model for how transparent, ESG-compliant, and technically de-risked rare earth projects can thrive in the new multipolar world economy.