Harena Rare Earths secures US$5M DFC funding as Madagascar project advances toward production

Harena Rare Earths Executive Chairman Ivan Murphy joined Steve Darling from Proactive to discuss a major financing milestone for the company's flagship rare earths project in Madagascar, announcing that Harena has secured a US$5 million project funding facility from the U.S. International Development Finance Corporation (DFC). Murphy described the funding as the first step in what could become a broader strategic financing relationship with the DFC and other organizations connected to the U.S. government's critical minerals initiative. He noted that additional funding opportunities may become available as the project progresses through key development milestones and moves closer to commercial production. The funding underscores growing international interest in securing diversified sources of critical minerals outside China, particularly rare earth elements that are essential for electric vehicles, renewable energy technologies, advanced electronics and defense applications. Murphy highlighted that Harena's Madagascar asset is considered one of the largest proven ionic clay rare earth deposits outside China. Unlike many traditional hard-rock rare earth projects, ionic clay deposits offer significant operational advantages because they do not require extensive blasting, crushing or complex mineral processing in the early stages of development. As a result, Harena believes it can move from development to production more rapidly and at a potentially lower capital cost than many competing rare earth projects. The company is currently targeting initial production within approximately 20 to 24 months. A key component of the DFC partnership involves co-funding the construction of an onsite pilot plant and laboratory in Madagascar. Murphy explained that these facilities will allow the company to demonstrate, under real operating conditions, the same concentration and extraction processes that have already been successfully validated through independent laboratory testing. The pilot plant is expected to serve as a critical bridge between laboratory-scale validation and full-scale commercial production. Successful operation of the pilot facility would provide important technical data, support future financing discussions and help de-risk the project for potential strategic partners and investors. Looking ahead, Murphy identified completion of the pilot plant and laboratory as the company's most important objectives over the next two quarters. He said these milestones will play a central role in advancing project financing discussions and demonstrating the commercial viability of the deposit. Murphy also noted growing interest from potential offtake partners, which he believes has been strengthened by the project's connection to the U.S. government's critical minerals strategy. As global manufacturers seek secure and diversified rare earth supply chains, Harena is seeing increased inbound inquiries regarding future supply agreements. #harenaraerearths #otcqb #crmnf #lse #hree #RareEarths #CriticalMinerals #DFC #USDevelopmentFinance #MadagascarMining #RareEarthMining #EnergyTransition #EVSupplyChain #StrategicMetals #MiningNews #CleanEnergy #ResourceInvesting #ProactiveInvestors #SteveDarling