Australia's Sunrise Energy secures US financing interest for Scandium project

Sept 16 (Reuters) - Canadian mining entrepreneur Robert Friedland-backed Sunrise Energy Metals Ltd SRL.AX received a letter of interest from the U.S. Export-Import Bank for $67 million in debt financing for its Syerston Scandium Project in New South Wales.

Shares of the miner surged as much as 38.8% to A$4.65, their highest level since November 2018, outperforming a 0.4% increase in the benchmark S&P/ASX 200 index .AXJO.

The financing represents half the estimated development costs for the project, the company said.

U.S. government support underscores scandium's strategic importance following China's April export controls on rare earth metals, which have disrupted global supply chains.

The restrictions have created supply bottlenecks across industries, making alternative sources increasingly valuable to Western defense and technology sectors.

"As a key ally of the United States, Australia's significant endowment of strategic metals positions it to be an important supplier," Co-Chair Robert Friedland said.

The company expects to complete its feasibility study by late October to incorporate new metal inventories into ore reserve estimates for the project.

If Sunrise proceeds with a formal application, EXIM will conduct due diligence before making a final lending commitment, the company said.