Victory Metals secures US$10m Saudi-backed loan to fast-track North Stanmore rare earths project
Victory Metals (ASX: VTM) has received a commitment from sovereign investment firm Sanabil Investments for the provision of a US$10 million loan facility to advance its North Stanmore heavy rare earths project in Western Australia.
The company will use the unsecured loan — which includes a two-year moratorium on interest payments and a 3.9% interest rate over the remaining term — for exploration, capital, operating and development expenditure to fast-track the project.
Sanabil is a subsidiary of the Kingdom of Saudi Arabia’s Public Investment Fund (PIF) and the loan marks a major step forward in advancing North Stanmore as a strategic source of rare earths for global supply chains.
Downstream push
Victory chief executive officer Brendan Clark said the funding would strengthen the company’s financial position and align North Stanmore with Saudi Arabia’s push into downstream critical minerals.
“This is a defining moment for us and it speaks volumes about the scale, quality and global relevance of our North Stanmore project and the potential of this rare earths opportunity,” he said.
Mr Clark said Sanabil had requested first right to provide $330m in funding for the development and construction of the North Stanmore processing plant.
“Sanabil brings a funding pathway to development as well as deep international networks, geopolitical reach and alignment with Saudi Arabia’s vision of becoming a global leader in critical minerals and industrial technology.”
National initiative
Saudi Arabia’s Vision 2030 is a national initiative to diversify the country’s economy beyond oil and gas by investing in high-impact sectors such as mining, advanced manufacturing and renewable technologies.
A key pillar of the strategy is the development of downstream processing capabilities for critical minerals and rare earth elements, which are essential for sectors including defence, semiconductors, clean energy and electric mobility.
Sanabil Investments deploys US$3 billion into projects that align with this national vision.
Commercial validation
Mr Clark said Sanabil’s commitment to Victory signalled strong geopolitical and commercial validation of the North Stanmore project.
“Victory is uniquely positioned to support Saudi Arabia’s Vision 2030 program, as our large-scale, clay-hosted deposit is rich in heavy rare earths and strategic defence metals,” he added.
“These are all crucial inputs for the Kingdom’s industrial diversification and downstream ambitions.”