ST. LOUIS,
Aug. 8,
2024 /PRNewswire/ -- U.S. Strategic
Metals ("USSM" or the "Company") is pleased to announce it
has received a non-binding Letter of Interest ("LOI") from the
Export-Import Bank of the United
States ("EXIM Bank"), for a potential debt funding package
of $400,000,000, with a loan term of
up to 15 years. The funding will enable further development
of USSM`s Missouri-based mining
and metallurgical project (the "Project").
This transaction may be eligible for special consideration under
EXIM Bank's China and
Transformational Export Program ("CTEP"), a congressional mandate
for EXIM Bank to help American companies facing competition from
the People's Republic of China
("PRC") in sectors including Renewable Energy, Energy Storage,
& Energy Efficiency.
Given the PRC's dominant market position in critical minerals
used in lithium-ion battery and advanced superalloy applications,
EXIM Bank's potential funding for USSM supports an
America's-focused critical minerals supply chain and helps advance
the Company's strategic partnerships for domestic US
processing.
The EXIM loan, in combination with existing equity and credit
facilities, would provide funding for substantially all of the
anticipated construction and development capital required to
complete the Project.
Following USSM's formal application for debt funding, EXIM Bank
will begin their formal due diligence process and conduct the
required comprehensive underwriting to determine the appropriate
terms and conditions of the loan.
This press release does not constitute an offer or sale of, or
the solicitation of an offer to buy, securities of the Company nor
shall there be any sale of any securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About US Strategic Metals.
USSM is a St Louis, Missouri,
US-based critical minerals company; its' state-of-the-art
metallurgical plant will process third party concentrates and
recycle metals from lithium-ion batteries. USSM will also mine and
process the largest cobalt reserve in North America.
The Project will produce cobalt, nickel, lithium and copper. Its
fleixble flow sheet will enable it to supply the associated metals,
intermediate products and salts which are required for the energy
transition and other US strategic needs.
USSM is focused on building a dynamic and sustainable business
with an emphasis on applying leading environmental stewardship,
social engagement, and corporate governance practices to its
strategy.
Safe Harbor Statement
This news release contains statements that involve expectations,
plans, or intentions (such as those relating to the Company's
ability to enter into a definitive agreement with EXIM Bank for the
debt financing as provided for in the LOI) and other factors
discussed from time to time in the Company's Securities and
Exchange Commission filings. These statements are forward-looking
and are subject to risks and uncertainties, so actual results may
vary materially. These forward-looking statements can be identified
by words such as "may," "should," "expect," "anticipate,"
"believe," "estimate," "intend," "plan," and other similar
expressions. Examples of forward-looking statements include, among
others, statements the Company makes regarding its ability to enter
into a definitive agreement with EXIM Bank for debt funding as
provided for in the LOI, approval for special consideration under
Qualification under Section 402 of EXIM Bank's 2019 reauthorization
(P.L. 116-94), ability to establish "Proven" or "Probable"
Reserves, as defined by the SEC under Industry Guide 7, through the
completion of a Feasibility Study for the minerals that the Company
seeks to produce and the inherent risks of mining exploration,
development, and processing operations that may negatively impact
the business. Consequently, the Company's actual results could
differ materially from those anticipated in these forward-looking
statements as a result of certain factors not within the control of
the Company. The Company cautions readers not to place undue
reliance on any such forward-looking statements, which speak only
as of the date made. The Company disclaims any obligation
subsequently to revise any forward-looking statements to reflect
events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.
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SOURCE US Strategic Metals