Harena Rare Earths (LSE:HREE) (USOTC:CRMNF) has begun receiving development funding from the US International Development Finance Corporation (DFC), with US$480,000 received to date and further drawdowns progressing. The funding supports the advancement of its wholly owned Ampasindava ionic clay rare earth project in Madagascar, as the company moves forward with technical studies, permitting and preparations for its pilot programme.
The latest update marks an important step in translating Harena’s US$4.84 million Project Development Funding Agreement (PDFA) into funding for work on the ground. A further US$600,000 drawdown request has been submitted, with an additional request of approximately US$810,000 planned for January 2027.
With funding beginning to flow, the formalisation of its Exploitation Permit and a series of technical milestones ahead, Harena is progressing several key elements of its strategy to advance Ampasindava towards commercial development.
DFC Funding Moves Into Deployment
The DFC agreement represents a significant source of support for Harena as it advances the technical, environmental and engineering work required to develop Ampasindava.
Of the US$4.84 million development funding facility, US$480,000 has been received, a further US$600,000 has been requested, and the company plans to submit a request for approximately US$810,000 in January 2027.
These drawdowns are intended to support activities including permitting, environmental and social studies, pilot development and technical testwork. The funding will help Harena progress its existing Pre-Feasibility Study (PFS) towards a Definitive Feasibility Study (DFS), while advancing the work required to assess the project’s potential for full-scale development.
The progression from an agreed funding facility to actual receipts and further drawdown requests is an important development for the company. It provides financial support for the next phase of work and enables Harena to progress defined project activities.
The DFC’s involvement also reflects the strategic importance of developing alternative sources of rare earths. Its support for Ampasindava is part of a wider effort to diversify critical mineral supply chains and improve access to materials essential for advanced manufacturing and national security.
Potential for Further Financing
Beyond the initial development funding, the PDFA provides for the DFC to consider potential additional debt or equity financing of up to US$67 million.
Although nothing is committed as yet, this creates a potential future financing pathway as Ampasindava advances through its development milestones. Any further funding would remain subject to the relevant conditions, assessments and approvals.
The prospect of additional financing is particularly relevant as Harena works towards completing its DFS and establishing the technical and commercial foundations for a future construction decision.
For now, the immediate priority is to deploy the development funding against the work required to advance the project and deliver the next set of milestones.
Ionic Clay M&A Activity Highlights Strategic Value
Harena’s progress comes against a backdrop of significant merger and acquisition activity in the rare earths sector, including transactions involving ionic clay deposits outside China.
In October 2026, Lynas Rare Earths announced a proposed all-share acquisition of Meteoric Resources, valuing the company at approximately A$968 million and adding its Caldeira ionic clay rare earth project in Brazil to Lynas’s portfolio.
Earlier in 2026, USA Rare Earth agreed to acquire Serra Verde Group in a transaction valued at approximately US$2.8 billion. Serra Verde operates a major ionic clay rare earth deposit in Brazil and has established production, giving the transaction a different development profile from Harena’s earlier-stage Ampasindava project.
These transactions demonstrate the strategic interest that established producers and investors are placing on rare earth assets, particularly those capable of contributing to supply chains outside China.
Ionic clay deposits are attracting attention because of their potential to provide important rare earth elements, including the heavy rare earths and magnet metals required for advanced industrial and defence applications.
For Harena, this market context reinforces the importance of advancing Ampasindava through its next technical and permitting milestones. While the projects involved in recent transactions differ in scale, maturity and operating status, the activity highlights the broader strategic value attached to securing alternative sources of rare earth supply.
Harena’s focus remains on progressing its own project, strengthening its technical foundations and establishing the conditions needed to evaluate its future commercial potential.
Exploitation Permit Provides a Foundation for Progress
Harena has also made important progress on the regulatory front, with the formalisation of the Exploitation Permit for Ampasindava marking a significant milestone in the project’s development.
Attention is now focused on securing the Environmental Permit and completing the environmental and social workstreams required to advance the pilot phase.
These activities are essential to establishing the framework for the proposed operations, assessing their environmental and social impacts, and progressing the infrastructure and technical preparations needed for the next stage.
Alongside permitting, Harena is advancing bulk sampling and metallurgical testwork to improve its understanding of the deposit and optimise the proposed processing approach.
Results from the metallurgical testwork are expected in the first quarter of 2027. This work is intended to help establish pilot-plant design criteria, inform the processing flowsheet and generate representative concentrate for evaluation by potential offtake partners.
The results will contribute to the broader DFS programme, helping to refine the project’s technical parameters and inform future development decisions.
With development funding now being drawn down and regulatory and technical work progressing, Harena is working to turn the project’s existing resource potential into a more advanced development proposition.
A Project With Defined Development Economics
Harena’s completed PFS provides an initial economic framework for the proposed Ampasindava operation.
The study envisages a 20-year heap-leach operation, with approximately 71,000 tonnes of total rare earth oxides (TREO). It estimates pre-production capital expenditure of US$142 million and forecasts a post-tax net present value (NPV), discounted at 10%, of US$249.6 million, alongside a post-tax internal rate of return (IRR) of 30%.
These figures are estimates based on the assumptions and technical work underpinning the PFS. They are not guaranteed outcomes, and further work is required to refine the project’s design, costs and operating parameters.
The next stage is to build on this foundation through the DFS, metallurgical testwork and pilot programme. This work will help establish a more detailed understanding of the project’s technical requirements and provide further information for future investment and construction decisions.
The planned development approach is based on the deposit’s ionic clay characteristics and a proposed heap-leach processing route. The company is targeting the production of rare earth materials that could contribute to supply chains serving advanced manufacturing, permanent magnets, robotics and defence applications.
The presence of valuable magnet metals, including neodymium, praseodymium, dysprosium and terbium, adds to the project’s strategic relevance as industries seek more diversified sources of these essential materials.
The Next Phase: Funding, Testwork and Feasibility
The coming months will be important as Harena continues to progress Ampasindava through its development programme.
Key milestones include further DFC drawdowns, progress on environmental approvals, continued bulk sampling, metallurgical testwork results expected in the first quarter of 2027, and the advancement of the DFS and pilot-plant preparations.
Each of these activities is intended to strengthen the technical and commercial understanding of the project while supporting decisions on its future development.
The initial DFC receipts are particularly important because they demonstrate that the development funding agreement is moving into deployment. Further requested and planned drawdowns provide the next steps in funding the work programme, although their timing and receipt remain subject to the applicable processes.
For Harena Rare Earths, the combination of DFC funding beginning to flow, an Exploitation Permit in place and defined technical milestones ahead provides a clearer framework for advancing Ampasindava.
With rare earth supply chains attracting strategic investment and significant M&A activity, Harena’s immediate task is to continue converting this momentum into measurable progress on the ground. Successful delivery of the next milestones will be important in establishing the project’s readiness for its next stage of development.