IperionX secures up to $150m tax-exempt bond capacity from Virginia.

IperionX, a leading advanced materials company, has secured a reservation of up to $150 million in tax-exempt private activity bond (PAB) capacity from Virginia's industrial development bond program. This non-dilutive financing option can be used for future growth beyond the current Phase II titanium expansion program. The company will conduct due diligence on pricing, tenor, and bond terms to determine if PABs provide the optimal funding route.

IperionX Limited (NASDAQ: IPX, ASX: IPX), a leading advanced materials company, has been granted a reservation of up to $150 million in tax-exempt private activity bond (PAB) capacity from the Commonwealth of Virginia’s industrial development bond program [1][2][3]. This non-dilutive financing option provides IperionX with enhanced funding flexibility for future expansions beyond its current Phase II titanium expansion program, which is separately funded by a $42.1 million grant from the US Department of Defense.

Tax-exempt private activity bonds are issued by state or local authorities to finance private projects that deliver public benefits such as job creation, supply-chain resilience, and regional economic growth. Interest paid to investors is federally and often state income tax-exempt, allowing issuers to access capital at materially lower funding costs than taxable debt [1][2][3]. IperionX will conduct due diligence on pricing, tenor, and bond terms throughout 2025 to determine if tax-exempt PABs provide the optimal funding route before deciding on any bond issuance.

IperionX is a leading American titanium metal and critical materials company, utilizing patented metal technologies to produce high-performance titanium alloys from titanium minerals or scrap titanium at lower energy, cost, and carbon emissions. Their Titan critical minerals project is the largest JORC-compliant mineral resource of titanium, rare earth, and zircon minerals sands in the United States. The company's titanium metal and critical minerals are essential for advanced U.S. industries including space, aerospace, defense, consumer electronics, hydrogen, automotive, and additive manufacturing [1][2][3].

The reservation of PAB capacity does not obligate IperionX to issue PABs. Any potential future issue of PABs remains subject to the agreement and execution of binding documentation [2].

References:
[1] https://www.stocktitan.net/news/IPX/iperion-x-granted-up-to-us-150-million-in-tax-exempt-private-4u1ky3ynu5oq.html
[2] https://www.marketscreener.com/news/iperionx-granted-up-to-us-150-million-in-tax-exempt-private-activity-bond-issuance-capacity-ce7c5edfdc8bff2c
[3] https://financialpost.com/globe-newswire/iperionx-granted-up-to-us150-million-in-tax-exempt-private-activity-bond-issuance-capacity