Heavy Minerals (ASX:HVY) has secured a funding letter of support from Atradius Dutch State Business for the potential development of the Port Gregory Project.

The exploration company said Atradius manages the government credit guarantee scheme on behalf of the Netherlands Export Credit Agency.

It also said the funding will cover a significant percentage of the $110M capital expenditure for the project.

Heavy Minerals added that its consultant Royal IHC's Port Gregory supply content qualifies the project for Dutch ECA coverage, which typically supports favourable debt financing terms such as competitive market rates and repayment terms.