Locksley Resources (ASX:LKY) Starts Drilling at El Campo After $191M US Government Backing: Time to Buy?

Locksley Resources (ASX: LKY) has been one of the standout performers on the ASX this year, with shares up more than 2,000% from their January lows. This week, the company hit another milestone – commencing its maiden drilling campaign at the El Campo rare earth prospect within its Mojave Project in California. The news comes just days after the appointment of Stacy Newstead, Materials Strategy and Risk Manager at Lockheed Martin, to its advisory board.
For investors following the critical minerals space, these back-to-back catalysts suggest Locksley is building serious momentum. The company recently received a Letter of Interest from the Export-Import Bank of the United States (EXIM) outlining the intent to provide up to US$191 million in potential project financing. That kind of US government backing is rare for an ASX-listed explorer and signals Washington views this project as strategically important.

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Locksley Targets US Antimony and Rare Earth Independence

The Mojave Project sits in prime real estate for critical minerals – just 5 kilometres from MP Materials’ Mountain Pass Mine, North America’s only operating rare earth facility. This location provides both geological credibility and infrastructure advantages that most early-stage explorers simply don’t have.
What sets Locksley apart is its “mine-to-market” approach. The company isn’t just exploring – it’s building an entire US-based supply chain. It has already produced a 100% American-made antimony ingot, proving domestic processing capability works. Research partnerships with Columbia University for rare earth processing and Rice University for antimony extraction further strengthen this integrated strategy.
CEO Kerrie Matthews noted that the EXIM engagement “represents a cornerstone in Locksley’s engagement with US federal agencies” and provides a foundation for formal financing discussions. In our view, this government endorsement meaningfully reduces funding risk compared to typical exploration-stage companies.

Lockheed Martin Hire Signals Defence Industry Validation

Newstead currently serves as Materials Strategy and Risk Manager at Lockheed Martin, where she leads efforts to secure domestic and allied sources of key materials essential to US defence manufacturing. This isn’t a token appointment – her expertise directly addresses the pathways Locksley needs to access federal funding and defence contracts.
With over 20 years of experience across government, defence and industrial sectors, Newstead brings credibility when engaging with Defence Production Act programmes. The company has already submitted a US Government White Paper funding request under the Defence Production Act Title III to accelerate development. This positions Locksley similarly to other defence-linked ASX plays like DroneShield (ASX: DRO), where US government relationships have proven crucial for commercial success.

The Investor’s Takeaway

Locksley currently trades with a market capitalisation of approximately A$97 million, making it a small-cap speculative play. The company has established an exploration target at the Desert Antimony Mine containing 19,400 to 67,000 tonnes of antimony metal. However, these estimates are conceptual, and there has been insufficient exploration to estimate a mineral resource.

Key risks:
– Early-stage exploration with no JORC resource
– EXIM financing is non-binding and contingent on completing full due diligence
– Drilling results not expected until Q1 2026

Catalysts to watch:
– El Campo drilling results (Q1 2026)
– Desert Antimony Mine drilling to follow
– Defence Production Act funding decision

We believe Locksley represents a speculative opportunity for investors comfortable with exploration risk who want exposure to the US critical minerals thematic. The combination of government backing, defence industry connections, and imminent drilling creates a catalyst-rich environment. However, until drill results confirm the resource potential, this remains a high-risk, high-reward proposition suited to growth-oriented portfolios.