IperionX Limited (NASDAQ: IPX, ASX: IPX) is pleased to
announce that it has received a Letter of Interest ("LOI") from the
Export-Import Bank of the United States ("EXIM Bank") for the
provisional sum of US$11.5 million in equipment finance with a
repayment tenor of 7 years, for the development of IperionX’s
Titanium Production Facility in Halifax County, Virginia.
IperionX has received notification from EXIM that the proposed
Titanium Production Facility may qualify for equipment finance
under both EXIM’s ‘China and Transformational Exports Program’ and
‘Make More in America Initiative’. These two programs enable EXIM
to extend its existing medium and long-term loan and loan guarantee
programs to support projects that reduce Chinese dominance in
strategic sectors and advance export-orientated domestic projects,
such as IperionX’s proposed Titanium Production Facility in
Virginia.
IperionX intends to apply equipment finance from EXIM Bank
towards key production assets including industrial furnaces and
comminution equipment, expected to cost approximately $11.5
million.
IperionX plans to build a 125 metric ton per annum titanium
production facility in Virginia, with first production expected in
2024. Once commissioned, IperionX intends to rapidly scale the
capacity of this advanced titanium production facility – in a
modular development approach – to 1,125 metric tons per annum on
the same site in Virginia.
Titanium is prized for its high strength-to-weight ratio,
resistance to high temperatures and corrosion. Titanium is a
critical material for many U.S. defense systems and for a range of
demanding applications in the aerospace, space, medical, consumer
electronics, additive manufacturing, hydrogen and automotive
sectors.
IperionX has the potential to deliver a full U.S. titanium
supply chain from titanium mineral production to the manufacturing
high performance titanium products, and the unique ability to use
100% recycled scrap titanium. IperionX can produce a wide range of
titanium products - including titanium powder, ingots, bars, and
plate – at higher energy efficiency, lower costs, and with lower
environmental impacts.
While the LOI is non-binding and conditional, the potential
funding support from EXIM Bank provides IperionX with a strong
foundation as it advances a range of competitive funding options
for its proposed Titanium Production Facility. IperionX does not
intend to advise or update the market with respect to any EXIM Bank
financial support application or discussion, unless the Company
reaches a definitive agreement for U.S. government financial
support.
Anastasios (Taso) Arima, IperionX CEO said:
“Titanium for the U.S. manufacturing sector is currently sourced
over long distances from foreign nations. We are pleased to receive
the letter of interest for the provisional sum of US$11.5 million
in equipment finance from US EXIM that will assist IperionX to
re-shore a lower-cost, more sustainable and fully integrated U.S.
titanium supply chain that is critical both for the manufacturing
of advanced goods as well as for America’s national security.”
About IperionX
IperionX aims to become a leading American titanium metal and
critical materials company – using patented metal technologies to
produce high performance titanium alloys, from titanium minerals or
scrap titanium, at lower energy, cost and carbon emissions.
Our Titan critical minerals project is the largest
JORC-compliant mineral resource of titanium, rare earth and zircon
minerals sands in the United States.
IperionX’s titanium metal and critical minerals are essential
for advanced industries including space, aerospace, defense,
consumer electronics, hydrogen, electric vehicles and additive
manufacturing.
About EXIM Bank
EXIM is the official export credit agency of the U.S.
Government. It is an independent Executive Branch agency with a
mission of supporting U.S. jobs by facilitating the export of U.S.
goods and services.
The Make More in America Initiative (“MMIA”) was developed in
response to President Biden’s Executive Order 14017 on American
Supply Chains and provides U.S. manufacturers new access to capital
to fill critical supply chain gaps, and was approved by EXIM’s
Board of Directors in April 2022. MMIA’s objective is to unlock
financing for U.S. manufacturing and close critical supply chain
gaps, especially in sectors critical to national security. Under
MMIA, EXIM is able make available the agency’s existing medium- and
long-term loan, loan guarantee, and insurance programs to
export-oriented domestic projects such as ICO.
The China and Transformational Exports Program (“CTEP”) was
established through a December 2019 Congressional reauthorisation
of EXIM’s charter. Under CTEP’s mandate, EXIM is authorised to help
U.S. exporters facing competition from China and to ensure that the
U.S. continues to lead in key strategic areas critical to national
security, including renewable energy, storage and efficiency. CTEP
supports the extension of EXIM loans, guarantees and insurance, at
rates and on terms and other conditions, to the extent practicable,
that are fully competitive with rates, terms and other conditions
established by China.
Forward Looking Statements
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward-looking words such as
“may”, “will”, “expect”, “intend”, “plan”, “estimate”,
“anticipate”, “continue”, and “guidance”, or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the Company’s
actual results, performance, and achievements to differ materially
from any future results, performance, or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licenses and permits and
diminishing quantities or grades of reserves, the Company’s ability
to comply with the relevant contractual terms to access the
technologies, commercially scale its closed-loop titanium
production processes, or protect its intellectual property rights,
political and social risks, changes to the regulatory framework
within which the Company operates or may in the future operate,
environmental conditions including extreme weather conditions,
recruitment and retention of personnel, industrial relations issues
and litigation.
Forward looking statements are based on the Company and its
management’s good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the Company’s business and operations in the future. The
Company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the Company’s business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the Company or management or beyond the Company’s
control.
Although the Company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements, or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the Company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the Company does not undertake any
obligation to publicly update or revise any of the forward-looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20231019305617/en/
Anastasios (Taso) Arima, Founder and CEO Toby Symonds, President
Dominic Allen, Chief Commercial Officer
Investors: investorrelations@iperionx.com Media:
media@iperionx.com +1 980 237 8900
www.iperionx.com
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