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Botswana-based mineral exploration company NexMetals Mining has announced the receipt of a non-binding Letter of Interest (LoI) from the Export-Import Bank of the United States (EXIM), indicating potential financing of up to USD 150 million.
The funding would support the redevelopment of NexMetals’ Selebi and Selkirk projects, two high-grade mineral assets located in Botswana. This preliminary proposal aligns with broader U.S. government objectives to strengthen international access to critical raw materials, especially in light of global efforts to diversify supply chains away from Chinese dominance.
Both Selebi and Selkirk are situated in Botswana, a country widely recognised for its political stability, investor-friendly regulations, and mineral wealth. The Selebi project spans a single mining license covering approximately 115 square kilometres, while the Selkirk site includes one mining license of 14.6 square kilometres, along with four prospecting licences that add another 126.7 square kilometres. Together, these licenses offer significant exploration and development potential.
According to NexMetals, these deposits are rich in nickel, copper, cobalt, and platinum group metals all of which are vital to clean energy technologies, electric vehicles, and defence systems. Their strategic relevance places the projects at the heart of international efforts to establish secure and sustainable sources of critical minerals.
The LoI from EXIM Bank does not represent a final commitment but rather an early-stage expression of interest, contingent on further due diligence and the successful submission of a formal financing application. If the financing proceeds, EXIM could support a structured loan package with a repayment period of up to 15 years. Additionally, the bank may require the use of U.S.-origin goods and services in line with Section 402 of its 2019 reauthorization.
This section falls under the China and Transformational Exports Program (CTEP), which seeks to enhance U.S. global competitiveness by promoting exports in strategic industries. By potentially backing projects like those led by NexMetals, the U.S. aims to counterbalance China’s influence in global mineral markets and reinforce supply chain resilience in key industrial sectors. NexMetals CEO Morgan Lekstrom emphasized the geopolitical significance of the U.S. interest:
“This represents a willingness from the United States to fund critical metals projects in one of Africa’s safest and most stable jurisdictions. It clearly denotes the US Government’s specific interest in Botswana, recognising both its rich mineral endowment and the scale of our high-grade projects.”
While still in the preliminary phase, the LoI sends a strong signal of institutional confidence in Botswana’s potential as a reliable source of critical minerals. If the deal materializes, it could mark one of the few instances of U.S. development finance support targeting mid-tier mining ventures in Southern Africa, potentially paving the way for increased international investment in the region.
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The potential financing offer to NexMetals underscores Botswana’s growing strategic importance in the global race for energy transition materials. With its combination of resource wealth, stable governance, and emerging global partnerships, Botswana could play a pivotal role in reshaping critical mineral supply chains. NexMetals, if successful in securing the funding and advancing its projects, stands to become a key player in this evolving geopolitical and industrial landscape.
