Skyline Builders Group Holding Ltd (NASDAQ:KAZR) has announced that it has received letters of interest totaling $1.6 billion from the U.S. Export-Import Bank and the U.S. International Development Finance Corporation for its tungsten project in Kazakhstan. This amount represents approximately 145% of the project's estimated $1.1 billion cost. However, no binding agreements for loans, guarantees, or equity have been signed yet.
The financing remains nonbinding, and investors are closely watching the size of the potential deal. Company filings indicate that the Northern Katpar and Upper Kairakty deposits could produce 12,000 metric tons of tungsten annually, accounting for roughly 15% of current global supply. Cove Kaz holds a 70% stake in the project, while Kazakhstan's Tau-Ken Samruk owns the remaining 30%.
Political scrutiny has intensified following a report by OnTimeBrief, citing The New York Times and SEC filings, that Donald Trump Jr. and Eric Trump have invested in the Kazakhstan project through Dominari Securities. Additionally, Cantor Fitzgerald, led by Howard Lutnick's sons Brandon and Kyle, helped ASP Isotopes Inc (NASDAQ:ASPI) raise $210 million. The report claims that the Trump and Lutnick families are linked to at least 14 mining companies that have sought or received over $8.9 billion in federal funding.
Public filings do not show Donald Trump Jr. or Eric Trump holding a direct 20% stake in Kaz Resources. However, Dominari Holdings Inc (NASDAQ:DOMH) lists both as 5.96% beneficial owners and reports an investment in American Ventures LLC Series XIX, a fund connected to Skyline. A spokesman for Donald Trump Jr. stated that he is merely a passive investor in American Ventures and does not engage in federal government matters for companies he backs.
Skyline changed its Nasdaq ticker from SKBL to KAZR on June 17 as it progresses toward a merger with Cove Kaz. The company noted that the merger still requires approval of a Form S-4, regulatory clearance, and other conditions. The deal is expected to close by the end of 2026. KAZR shares ended the U.S. session at $3.00 on Friday, with volume of 370,373 shares.
Investors are hopeful that policy support will translate into tangible project spending. The $1.6 billion in letters of interest breaks down to about $133,000 per ton of annual tungsten production. Adding the $400 million that Skyline has requested from the Pentagon's Office of Strategic Capital, as reported by the Financial Times, total public backing could reach $2 billion—roughly 182% of the project cost.
Cove Kaz executive chairman Pini Althaus stated in April that the merger will support efforts to develop and construct mining and processing projects throughout Kazakhstan. Paul E. Mann, executive chairman of both Skyline and ASP Isotopes, noted that Cove Kaz has expanded its platform through joint ventures and land concessions in Kazakhstan. Dominic Heaton, CEO of Cove Kaz, said the next steps include feasibility studies, engineering, permits, and construction planning.
Kaz Resources claims its ore body is substantial, with 1.4 million tonnes of tungsten trioxide in listed deposits, representing about 70% of Kazakhstan's total tungsten resources. The company targets 5,000 tonnes per year at Northern Katpar and 7,000 tonnes per year at Upper Kairakty. However, mining analysts caution that larger deposits do not guarantee better cash flow. Christopher Ecclestone of Hallgarten & Company told the Financial Times that the Pentagon is willing to pay for tungsten at any price. Quentin Lamarche, CEO of TechMet SCM, described the Kazakh deposits as very early stage, requiring significant time and capital.
Political risk remains a factor. In March, Representative Maxine Dexter, the top Democrat on the House Natural Resources Oversight and Investigations Subcommittee, attempted to subpoena Donald Trump Jr. over federal backing for Vulcan Elements, but Republicans blocked the move. The Financial Times found no evidence that Donald Trump Jr. or Eric Trump knew Cove was close to securing U.S. support when they invested in Skyline, nor that either had any influence over the decision.
