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Sunrise Energy Metals surges after US$400 million loan for scandium project
The U.S. Office of Strategic Capital is backing a proposed 25-year debt facility to help the company build a scandium value chain, including mining at its Syerston project.
Shares in Australia-listed Sunrise Energy Metals Ltd jumped by 29% at opening after the U.S. Department of War announced a conditional commitment for up to US$400 million in loan support to expand its scandium operations, according to OilPrice.
The U.S. Administration said the Department of War’s Office of Strategic Capital would provide funding under a proposed 25-year debt facility for development of the Syerston Scandium Project in New South Wales, Australia.
Scandium is used in defense and aerospace applications, and the U.S. Administration said no primary mine-source scandium supply exists globally. It also stated foreign competitors dominate supply, accounting for about 80% of global mining production and nearly 100% of scandium processing.
With the U.S. funding and planned private capital, Sunrise intends to develop a full scandium value chain, starting with primary mining at Syerston and building metallization and additive layer manufacturing capabilities to support a Western-aligned supply chain, the outlet said.