Harena Rare Earths Secures $4.84 Million Funding from US DFC for Madagascar Ampasindava Rare Earth Project

Harena’s Ampasindava Ionic Clay Rare Earth Deposit in Madagascar

Harena Rare Earths plc is focused on rare earth exploration and development, holding 100% ownership of the Ampasindava Ionic Clay Rare Earth Project in Madagascar. This project is among the largest ionic clay rare earth deposits outside China, rich in valuable magnet metals such as heavy rare earths including neodymium, dysprosium, and praseodymium. These elements are vital for neodymium magnets used extensively in global energy transition technologies, defence systems, and the growing robotics industry.

The company aims to develop environmentally responsible, high-recovery mining operations that ensure a sustainable supply of critical minerals to international markets. Harena’s strategic position addresses increasing Western demand for secure, allied rare earth sources, historically dominated by China. The Ampasindava Project offers a compelling opportunity for investors targeting critical minerals amid rising demand driven by renewable energy adoption and advanced defence technology expansion.

Details of the DFC’s $4.84 Million Funding Commitment and Terms

On 22 July 2026, Harena signed the Project Development Funding Agreement with the U.S. International Development Finance Corporation, which committed $4.84 million toward the project’s development budget. All funding terms have been finalized, and the initial tranche is currently being drawn down. This swift transition from agreement to fund deployment highlights strong momentum and the DFC’s confidence in Harena’s development schedule.

Funds will support critical development activities including permitting, environmental and social impact studies required for Madagascar operations, and the advancement of the Proof-of-Concept pilot plant. These foundational steps accelerate progress toward the Definitive Feasibility Study, a key milestone that will confirm the project’s technical and economic viability and guide the final construction decision.

Strategic Importance of U.S. Government Support for Critical Mineral Supply Chains

The DFC’s funding commitment aligns with its strategic mission to promote U.S. foreign policy and economic development by mobilizing private capital for secure, allied supply chains. As the U.S. Government’s investment arm, the DFC prioritizes critical sectors including critical minerals, infrastructure, and advanced technology. The agreement underscores the Ampasindava Project’s strategic value in securing Western-aligned rare earth sources essential for national security and economic competitiveness.

Following approximately nine months of rigorous due diligence, the DFC’s engagement confirms the project’s technical, financial, and strategic merit. This validation enhances the credibility of Harena’s development plan and positions Ampasindava as a key contributor to diversifying global rare earth supplies beyond traditional Chinese dominance. For investors, U.S. Government backing reduces development and market risks amid growing geopolitical focus on critical mineral security.

Future Financing Prospects and DFC’s Reserved Rights for Expanded Investment

Beyond the initial $4.84 million, the agreement grants the DFC rights to be considered for larger future financing or investment roles as Ampasindava advances toward construction. While any future involvement is subject to DFC’s due diligence and approval, management views this as a significant potential funding pipeline. The DFC’s expressed interest in a larger financing role could transform the partnership and reduce Harena’s reliance on commercial capital markets for construction financing.

This reserved option signals the DFC’s long-term strategic commitment to Ampasindava and confidence in its development trajectory. However, investors should note that realization of additional funding depends on future DFC decisions and project milestones.

Project Development Milestones and Timeline Toward Definitive Feasibility Study

The funding accelerates the project’s timeline with active on-site work underway in Madagascar under Executive Technical Director Allan Mulligan. DFC funds are being applied to permitting, environmental and social studies, and the Proof-of-Concept pilot plant, following a structured approach to mitigate risks by validating operational and environmental factors. These activities will directly support the Definitive Feasibility Study, which will determine the project’s readiness for construction.

The Definitive Feasibility Study is a pivotal milestone that will inform the construction decision. The funding enables Harena to advance this work on an accelerated schedule compared to pre-funding plans. Management has committed to providing regular updates on site progress, offering investors transparent visibility into milestone achievements supported by DFC funding.

Ionic Clay Rare Earth Extraction Technology and Market Positioning

The Ampasindava Project utilizes ionic clay rare earth extraction technology, which differs from traditional hard rock mining by employing in-situ or heap leaching methods. This approach offers advantages in capital efficiency and environmental impact, supporting Harena’s commitment to low-impact, high-recovery mining. The project’s environmentally sustainable extraction method positions it competitively within the rare earth sector.

The deposit’s high concentrations of valuable magnet metals, especially heavy rare earths like dysprosium and neodymium, provide significant economic advantages. These elements are essential for high-performance permanent magnets used in electric vehicles, renewable energy equipment, and advanced military applications. The substantial reserves enhance the project’s economic potential and justify the focused development investment.

Critical Minerals Market Trends and Rising Western Demand

Global rare earth element demand is growing steadily, driven by renewable energy expansion, electric vehicle production, and increased defence spending in Western countries. Neodymium magnets are vital components in electric motors, wind turbines, and military systems, fueling structural demand across multiple sectors. The concentration of rare earth supply in China has exposed strategic vulnerabilities, prompting efforts to diversify supply chains toward allied sources.

Government policies and private sector initiatives reflect the strategic imperative to secure Western-aligned critical mineral sources. The DFC’s funding commitment to Ampasindava exemplifies this policy environment and the U.S. Government’s prioritization of critical mineral supply chain security. For investors, this context provides structural support for rare earth projects outside China and mitigates demand-side commercialization risks.

Executive Leadership and Development Progress

Ivan Murphy serves as Executive Chairman, with Allan Mulligan as Executive Technical Director overseeing Madagascar operations. Management highlights a positive, professional relationship with the DFC throughout the nine-month process culminating in the funding agreement, acknowledging contributions from DFC Chief of Staff and Head of Investments Conor Coleman and his team. This strong partnership foundation supports ongoing project acceleration.

Ivan Murphy confirms active on-site development and promises forthcoming shareholder updates. The company has established an investor hub for inquiries related to this announcement, demonstrating a commitment to transparent communication. Senior management’s direct involvement in development and stakeholder engagement reflects a hands-on approach to execution.

Madagascar Operating Environment and Project Location

The Ampasindava Project is situated in Madagascar, an island nation off Africa’s east coast with established mining sectors and regulatory frameworks. DFC-funded environmental and social studies address local operational conditions, community engagement, impact assessments, and compliance with national and international standards. These studies are crucial for securing permits and social license to operate.

Madagascar’s geographic advantages, resource wealth, and mining infrastructure make it a viable jurisdiction for rare earth development. The focus on environmental and social best practices ensures benefits for local communities and sustainability. Successful completion of these studies and permit acquisition are vital milestones toward construction.

Investment Impact and Shareholder Value Considerations

The DFC Project Development Funding Agreement is a significant positive for Harena shareholders, providing external validation of the project’s strategic and technical merits from a major U.S. Government agency. This funding removes critical uncertainty regarding capital availability for advancing to the Definitive Feasibility Study phase. The possibility of larger future DFC financing further de-risks the development path by offering an alternative to commercial capital markets for construction funding.

While immediate share price effects were not evident at announcement, medium-term value depends on successful milestone execution and regulatory approvals. Harena’s commitment to regular progress updates will help investors monitor advancement. The project’s strategic alignment with Western critical minerals security and government-backed supply chain diversification offers a strong structural growth outlook, contingent on technical and regulatory success.