VHM’s Share Price Surges Despite Non-Binding US$200m EXIM LOI
VHM Limited has clarified that a non-binding US$200 million letter of interest from the US Export-Import Bank for its Goschen project is not material to its share price, confirming full compliance with ASX disclosure rules despite recent market speculation.
- Received non-binding US$200m LOI from US Export-Import Bank
- LOI subject to due diligence and government approvals
- Announcement deemed not market sensitive by VHM
- Delay in disclosure due to US government furlough and approval process
- VHM confirms compliance with ASX continuous disclosure obligations
Background on the LOI
VHM Limited recently disclosed it received a Letter of Interest (LOI) from the US Export-Import Bank (EXIM) offering up to US$200 million (approximately A$304 million) in project financing for its Goschen Rare Earths and Mineral Sands Project in Victoria. This announcement sparked market attention due to the size of the potential funding and the strategic importance of rare earths in global supply chains.
VHM’s Response to ASX Queries
Following the announcement, the Australian Securities Exchange (ASX) issued an Aware Letter seeking clarification on the materiality and timing of the disclosure. VHM responded by emphasizing that the LOI is non-binding and contingent on extensive due diligence and approvals, including from US government agencies. The company stated it did not consider the LOI information to be price sensitive at the time of release, a view supported by the share price decline on the announcement day.
Disclosure Timing and Government Furlough Impact
VHM first received the LOI on 1 October 2025 but delayed public disclosure until 6 October 2025. This delay was attributed to the requirement to obtain approvals from EXIM and Export Finance Australia, complicated by a US government furlough that began on 1 October, affecting EXIM and other agencies. VHM maintained that it complied with Listing Rule 3.1 and its continuous disclosure policy by releasing the information promptly once approvals were secured.
Market Reaction and Compliance Confirmation
Despite the initial share price dip on the announcement day, VHM’s shares rose sharply the following day, climbing from $0.225 to a high of $0.375. VHM acknowledged this movement but stated it was unaware of any other factors influencing the price. The company confirmed it remains fully compliant with ASX Listing Rules and continuous disclosure obligations, with all responses to ASX authorized by its board or delegated officers.
Looking Ahead
While the LOI signals potential significant financing support for VHM’s Goschen project, the non-binding nature and pending approvals mean investors should remain cautious. The company’s transparent handling of ASX’s inquiries reinforces its commitment to regulatory compliance amid evolving project developments.
Bottom Line?
VHM’s cautious stance on the EXIM LOI underscores the fine line between market optimism and regulatory prudence.
Questions in the middle?
- Will the LOI progress to a binding financing agreement and on what timeline?
- How will ongoing US government funding uncertainties affect EXIM’s support?
- What impact will this potential financing have on VHM’s project development and valuation?
