Australian Vanadium (ASX:AVL) has received a non-binding letter of interest from the Export-Import Bank of the United States to provide up to US$31 million ($45.5 million) in debt financing for the Australian Vanadium Project.
This financial support is aimed at the development and construction phases of the project.
The EXIM letter of interest underscores the strategic importance of vanadium projects within Australia.
According to the announcement, EXIM's potential backing is linked to the likelihood of sourcing equipment from the United States for the project.
AVL will continue to explore opportunities to increase the scope of US content in their optimised feasibility study.
"Receiving support from agencies such as EXIM to help fund the Project demonstrates its advanced and significant nature," said Graham Arvidson, CEO of Australian Vanadium.
"Vanadium is classed as both a critical and battery mineral, with countries around the world looking to establish secure supply chains," Arvidson added.
The project includes a mine, a crushing, milling, and beneficiation plant located at Gabanintha near Meekatharra, and a downstream vanadium processing plant at Tenindewa near Mullewa.
This marks another key milestone for Australian Vanadium as it continues to advance the optimised feasibility study, focusing on finalising the detailed mining plan and optimising project infrastructure.
At the time of reporting, Australian Vanadium's share price was $0.0.15.