Harena Rare Earths (LON: HREE) shares rallied 27% after the company signed a Project Development Funding Agreement with the United States International Development Finance Corporation.
The agreement marks the first direct financial commitment from DFC to Harena’s Ampasindava ionic clay rare earths project in Madagascar.
DFC, the US Government’s international investment arm, has committed up to US$4.84 million towards the agreed project development budget.
Harena said all terms of the funding have now been agreed, with drawdown of the first tranche already underway.
The funds will be used for permitting, environmental and social studies, and development of the company’s Proof-of-Concept pilot plant.
The work is intended to support the pathway towards a Definitive Feasibility Study and, ultimately, a construction decision.
Harena said the agreement follows an extensive due diligence and engagement process with DFC and underlines the strategic importance of Ampasindava to US and allied critical mineral supply chains.
Under the agreement, DFC has also secured rights to be considered for future direct financing or investment in the project as it advances.
Harena said no further funding figure or commitment has been agreed at this stage, with any future involvement subject to DFC’s own due diligence and approval processes.
Executive chairman Ivan Murphy described the agreement as a “turning point” for Ampasindava and a strong endorsement of its potential as a Western-aligned source of critical magnet rare earths.
He said funding is now agreed, drawdown is underway and development work is progressing on the ground in Madagascar.
The company said it expects to provide a further update shortly on site progress and development work.
