Meteoric Resources (ASX:MEI) will have to consider international loans tied to offtake as collateral for financing due to a scarcity of funding in Brazil, Bloomberg News reported on Wednesday, citing Marcelo Carvalho, the firm's executive director.
Meteoric owns the Caldeira rare earth ionic clay project in Brazil. It will start delivering 11,000 tons of rare earth oxide from the project in 2027, Carvalho said. The first license for the project is expected in the next two months.
Meteoric possesses a $250 million nonbinding support letter from the Export-Import Bank of the United States and has been in talks with the US International Development Finance.
Other miners attending a conference in Rio de Janeiro hosted by Brazil's development bank, BNDES, echoed similar concerns, the report said.
Brazil doesn't accept mining rights or offtake as collateral and BNDES has strict rules around using such pledges for private funding, according to Rinaldo Mancin, an executive director of Brazilian mining association Ibram.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.