ASM awarded A$5M Federal Government grant for Dubbo Project

Highlights

• A$5M grant will support work to identify potential lower capital and shorter implementation pathways to rare earth production at the Dubbo Project
• Grant is part of the Australian Federal Government's International Partnerships in Critical Minerals Program
• Award recognises ASM's growing strategic importance in building international critical mineral supply chain opportunities

PERTH, Australia, Oct. 15, 2024 /PRNewswire/ -- Australian Strategic Materials Limited (ASM or the Company) (ASX:ASM) is pleased to advise that it has been awarded A$5 million under the Australian Federal Government's International Partnerships in Critical Minerals (IPCM) Program. The grant funding will be matched by ASM and used to support work to identify potential lower capital and shorter implementation pathways to rare earth production (RE Options Assessment and Pilot Program) at the Company's Dubbo Project in New South Wales. The RE Options Assessment and Pilot Program will be undertaken as a precursor to the Front-End Engineering Design (FEED) services contract awarded to US-owned Bechtel Mining and Metals Inc. (Bechtel) in March 2024^[1].

The Dubbo Project is ASM's cornerstone critical minerals deposit which will produce a range of rare earth and critical mineral oxides essential to the global energy transition. The IPCM Program was launched in February 2024 to provide critical minerals businesses funding to grow end-to-end supply chains with Australia's international partners.

In a media release, Minister for Resources the Hon Madeleine King MP, said: "Government support to refine rare earths is important for our sovereign capabilities and will help our trading partners meet their economic, national security and emission reduction commitments."^[2]

The RE Options Assessment and Pilot Program will enable ASM to identify alternative, capital efficient and nearer term options for producing rare earth elements at the Dubbo Project before commencing the FEED services contract and undertaking an updated feasibility study on the construction and operation of the Dubbo Project. The RE Options Assessment and Pilot Program will involve engineering, sampling, metallurgical testing and a pilot program at ASM's pilot facility located at ANSTO, New South Wales. ASM will be working with international partners, DRA Global and Stantec, as well as local service providers Mining One and Core Metallurgy to deliver this program. These activities are critical to ASM progressing key funding activities and taking final investment decision (FID) on the Dubbo Project which is targeted for the first half of 2026.

"This funding recognises the Dubbo Project's national and international strategic importance. With this funding, we will be able to undertake important work to identify lower capital and shorter implementation pathways to unlock rare earth production at the Dubbo Project and ensure a focused completion of our final FEED," said ASM Managing Director and CEO, Ms Rowena Smith. 

"Working in collaboration with international strategic partners is critical if Australia is to play a leading role in building alternative, end-to-end rare earths and critical minerals supply chains. We thank the Australian Government for their generous support to enhance Australia's rare earth production and processing capability," said Ms Smith.

This funding support is in addition to ASM's recent capital raise activities^[3] and its current discussions with the Export-Import Bank of the United States (US EXIM) regarding ASM's application for funding under the Engineering Multiplier Program^[4]. Together, this funding will enable the Company to advance critical activities to reach FID on the Dubbo Project and transition into the construction phase.

ASM is building a mine to metals business to extract, refine and manufacture high-purity metals and alloys for a global customer base. The Dubbo Project will develop a secure, sustainable source of rare earths and critical minerals, strengthen mid-stream processing capability in Australia, drive renewable energy adoption and create jobs and investment in regional Australia.

This document has been authorised for release to the market by the Board.

[1] Refer: ASX Release 25 March 2024, Bechtel contract to support ASM with engineering at the Dubbo Project
[2] https://www.minister.industry.gov.au/ministers/king/media-releases/supporting-rare-earths-processing-future-made-australia
[3] Refer: ASX Release 3 June 2024, Results of Entitlement Offer
[4] Refer: ASX Release 25 March 2024, Bechtel contract to support ASM with engineering at the Dubbo Project