Got to hand it to Charles... he knows how to squeeze out government subsidies and put the taxpayer on the hook. No wonder Twiggy is interested, the original taxpayer subsidy seeking guided missile.
I note an article about ASM's Dubbo project in trouble by the ABC last week, pushing for more government support to save " More than 1,000 jobs are riding on the Dubbo Project, a proposed rare earth minerals mine by the company Australian Strategic Minerals (ASM)." ABC normally anti-mine development, but they do love a good subsidy in the land where everyone should get everything they want. I also note that ASM have already got Export Finance Australia on the hook to secure A$ 200 million of debt funding for its Dubbo Rare Earths Project in Central NSW from a similar non-binding letter of support from June 2021.
Almost 2 years ago, and bit like HAS $220M, seems it's not enough unless the Oz guv stumps up even more... I'm a fan of some government assistance, but not when the project cannot raise private risk finance without being 3/4 government supported. Still, well done Charles if he can get $320M from the government to bankroll Yangi, pretty impressive salesmanship and support for the long suffering. Below from ASM's June 2021 EFA release
As outlined in EFA’s non-binding letter of support, a successful outcome from the EFA assessment and due diligence process is contingent on a number of conditions, summarised below:
- securing offtake commitments for metal products, which diversify critical metal supply chains;
- execution of a lump sum turnkey fixed date contract with an acceptable engineering contractor for the engineering, construction and commissioning of the Project;
- finalising the Project’s funding plan including the raising of equity and securing funding from other lenders;
- meeting eligibility criteria, credit and risk requirements, including, but not limited to, EFA’s “know your customer” and anti-bribery requirements and checks; and
- the Project receiving the required regulatory and environmental approvals.
“The Dubbo Project is ready for construction, with all major State and Federal approvals and licences in place,” Mr Woodall said.
“Our discussions with potential offtake, equity and financing partners in the Dubbo Project have been very positive and are continuing. We look forward to updating the market as this progress.”
GLTAH
(20min delay)