Rare Element Resources nears $553M funding for Wyoming project

The U.S. Export-Import Bank (Exim) has expressed interest in providing a loan of up to $553 million (C$763 million) for Rare Element Resources (US-OTC: REEMF) to develop its rare earths Bear Lodge project in northeast Wyoming.

Rare Element Resources, which plans to start a demonstration plant at the project this year, says it received a non-binding letter of interest from the bank. It would support Bear Lodge’s permitting, engineering design and construction. Shares in the company gained 5% by mid-Tuesday for a market cap of $387 million.

Earlier this month, U.S. President Donald Trump invoked emergency powers to boost domestic production of critical minerals as part of a broader effort to counter China’s near-total control of the sector. The executive order directed federal agencies, including the Exim, to unlock permitting, funding and offtake agreements for critical minerals, including rare earths.

“The Bear Lodge project fits squarely into these goals,” the company said in a statement. “Exim’s Make More in America Initiative as well as the China and Transformational Exports Program provide beneficial terms for U.S. companies facing competition from China.”

China dominates rare earth production, accounting for 61% of global REE output. It also supplies about 38% of the world’s raw rare earth minerals and produces around 63% of global refined output.

Bear Lodge

Rare Element Resources expects the demonstration plant to start around mid-2025. It would operate for up to 10 months and produce up to 10 tonnes of neodymium-praseodymium oxide. The site has easy access to power and supporting infrastructure. A processing facility is to be located in the nearby town of Upton’s industrial area.

In 2004, Rare Element Resources initiated rare earth exploration at the Bull Hill target area. Between 2004 and 2013, more than 160,000 feet (nearly 50,000 metres) of drilling was completed across over 200 core holes, ranging from 88 to 1,886 feet (27 to 575 metres) in depth. In total, the project area has nearly 500 completed drill holes, totaling about 285,000 feet (87,000 metres) of core.

Geophysical and geological mapping also identified and confirmed rare earth exploration target areas at Bull Hill NW, Whitetail Ridge, Bull Hill West, Carbon, and East Taylor.

The Bear Lodge Mountains were initially prospected for gold in the late 19th and early 20th centuries. Rare earth mineralization was first discovered in 1949.

Hecla Mining (NYSE: HL) explored the Bear Lodge area—first for rare earths and later for gold—between 1987 and 1991. Their exploration identified the Bull Hill deposit based on three drill holes and the Whitetail Ridge mineralization based on two drill holes. From 1994 to 1996, the property was explored for gold.