Meteoric Resources (ASX: MEI) has garnered support from several US investment funds for its plans to develop a Tier 1 rare earth element (REE) project in Brazil. The Australian company focuses on resource exploration and development. It is dedicated to discovering and developing mineral deposits to meet growing global demand.
The American backers, along with existing and new international and domestic institutional investors, contributed to an oversubscribed $42.5 million placement as Meteoric advances towards a final investment decision (FID) on the Caldeira project. Priced at $0.14 per share, representing a 9.7% discount to Meteoric’s last traded price of $0.155 on July 18, the placement leaves Meteoric with a pro-forma cash balance exceeding $53 million.
Located in Minas Gerais, the Caldeira project is positioned to potentially become a long-term REE supplier to the US market. A lack of domestic rare earth developments and concerns over supplies from China make projects like Caldeira attractive to the US government and investors. Analysts anticipate significant growth in US demand for REEs, particularly for rare earth permanent magnets, driven by electric vehicles and renewable energy infrastructure.
Meteoric CEO Stuart Gale said the funding would facilitate progress towards a final investment decision. The funds will further optimise the pre-feasibility study (PFS) and support the establishment of a pilot plant to produce bulk samples for metallurgical test work and customer validation. Meteoric believes the Caldeira PFS, building on previous scoping studies, confirms the project as a globally strategic, long-life rare earths operation with significant growth potential, validating the $30 million invested since 2023.
