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Highlights

  • Victory receives US$10 million unsecured loan from Sanabil Investments, backed by Saudi Arabia’s Public Investment Fund.

  • Funding will support fast-tracked development of the North Stanmore rare earths project.

  • Sanabil gains right of first refusal on future AU$330 million project financing.

Victory Metals Ltd (ASX:VTM) has announced a major financing milestone, securing board approval and a Letter of Commitment for a US$10 million unsecured loan facility from Sanabil Investments LLC, a sovereign investment firm fully owned by Saudi Arabia’s Public Investment Fund (PIF).

The news has triggered a sharp rise in the company’s share price, with VTM shares climbing 15.7% to 96 cents during morning trade on 24 June.

The funding agreement represents a significant step forward in Victory’s strategy to develop its North Stanmore Project in Western Australia into a critical supplier of heavy rare earth elements. The loan facility, structured with a two-year interest moratorium and a subsequent interest rate of 3.9% per annum, comes with no fees or early repayment penalties. The total loan term extends over six years, with repayments commencing in the third year.

Importantly, Sanabil has also secured a right of first refusal to provide future funding of up to AU$330 million for the construction and development of Victory’s rare earth processing plant.

The funds will be deployed for general corporate purposes, including exploration, capital expenditure, operational costs, and fast-tracking development activities at North Stanmore. This project hosts a large-scale, clay-hosted deposit rich in Heavy Rare Earth Elements (HREE), Scandium, Gallium, and Hafnium, all critical for emerging technologies and global supply chains.

Victory CEO Brendan Clark described the agreement as a milestone for the company:
"Securing funding from Sanabil, one of the world’s most respected sovereign investment institutions, speaks volumes about the scale, quality, and global relevance of our North Stanmore Project. This partnership brings more than just capital—it opens the door to a long-term strategic pathway and geopolitical alignment with Vision 2030."

Sanabil Investments plays a pivotal role in Saudi Arabia’s Vision 2030, a national strategy aimed at diversifying the Kingdom’s economy beyond oil. A key part of this vision includes strategic investments in critical minerals, clean energy, and advanced manufacturing—areas where Victory’s project aligns directly.

Sanabil is mandated to deploy around US$3 billion annually into transformative global ventures. Its portfolio includes partnerships with leading investment firms such as Blackstone, KKR, and General Atlantic.

By aligning with a strategic sovereign investor, Victory is positioning itself as a non-Chinese aligned supply chain partner in the global race for rare earth materials, which are increasingly viewed as essential for defence, semiconductors, electric vehicles, and renewable energy technologies.

Final documentation and standard conditions precedents remain to be completed for the loan to be executed.