Track Record > Case Studies
Canadian rare earth elements project
One of the world’s largest undeveloped rare earth elements resources, the Project is one of the few sources of ‘heavy’ rare earth elements outside of China.
- The project involves the development and operation of an underground mine and processing facilities in Canada and in the US for the production of Rare Earth Oxides (“REO”) with zirconium, niobium and tantalum as by-products
- One of the world’s largest undeveloped rare earth elements resources, the Project is exceptionally enriched in ‘heavy’ rare earths) and is one of the few sources of “heavy” rare earth elements (eg. europium, terbium and dyspropsium) outside of China
- Expected output: 10,000 tonnes REO, 18,000 tonnes zirconium, 1700 tonnes niobium, 100 tonnes tantalum
- HCF will source and negotiate strategic investments, equity investments, off-take contracts and project financing in order to support the development and operation of the Project
- HCF has prepared and finalised a Financial Model for Avalon, which will serve as the company model and the basis for the strategic investor process and project financing. It will finalise the structure of the Project and confirm tax and transfer pricing applicable to the Project
- Using its extensive relationships within the financial investor universe and its in-depth rare earth sector knowledge, HCF established a list of relevant targets for the strategic investor process
- The strategic equity will be provided by international investors and HCF will target their respective ECAs to support their domestic business through the provision of competitively priced debt to the Project
Project financing and strategic investment
- The debt financing is expected to be sourced from government-backed agencies, multilaterals and commercial banks
- “HCF’s extensive experience in both investment banking and strategic advisory work in this sector will be key in enhancing or identifying all of the relationships that Avalon will need to finalise the construction plan for the project.” – Don Bubar, President and CEO of Avalon Rare Metals Inc.
- As an independent financial adviser that is able to secure both debt and equity financing, HCF is in a unique position to provide structure and short to long-term strategic thinking, in order to ensure the successful financing of the Project in a challenging environment