It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Thank you.
Some features of ATS will be disabled while you continue to use an ad-blocker.
ASX-listed American Rare Earths (AAR) has announced operational and structural changes aimed at advancing the Halleck Creek project, in Wyoming. Following a strategic review, the board has repositioned the project under a newly created, wholly owned subsidiary, Wyoming Rare (USA) Inc (WRI), to attract major US investors and enhance shareholder value.
The dedicated capital structure and funding sources for WRI are expected to make the Halleck Creek project, which includes the Cowboy State mine, a more attractive investment opportunity.
This move comes on the heels of a recent energy fund grant from the state of Wyoming and a clear pathway to permitting, positioning WRI to expedite the development of one of North America's largest rare earth deposits.
“By creating a dedicated subsidiary for the Halleck Creek project, we are positioning the company to unlock significant value and accelerate the development of a critical resource for the US. These changes will streamline our operations and enable us to better increase shareholder value long term.”
WRI will be led by an experienced leadership team, with Sten Gustafson as chairperson. He is the CEO and a director of NYSE-listed Pyrophyte Acquisition.
Joe Evers, ARR’s current general counsel, will serve as president of WRI. Evers played a key role in securing a $7.1-million grant from the State of Wyoming and has extensive experience in the energy and mining industries, says AAR.
John Mansanti will take on the role of senior adviser, supporting the development of the Cowboy State mine. Mansanti, with over 45 years of industry experience, will resign from the ARR board to fully dedicate his efforts to WRI.
ARR will continue its exploration activities in Australia and the US, focusing on critical minerals.
The scoping study of March 2024 highlighted the commercial viability of the Halleck Creek project, with a net present value of $673.9-million, an internal rate of return of 22.5%, and a payback period of 2.9 years, requiring an initial capital expenditure of $456.1-million. With less than 75% of the mineralised zones yet to be drilled and the deposit remaining open at depth, the project has significant upside potential.
originally posted by: worldstarcountry
The discovery may have been on here back in February, but Cowboy State Daily mentioned it back then. Anyways, further research seems to point the numbers Motley Fool showed me being this project. With USA moving to domestic chip production for a blossoming AI industry and this new mining potential, this company will probably be turning out money like the defense companies and apple pretty soon.
USA Rare Earth, LLC (“USARE” or the “Company”) is building a vertically integrated US rare earth magnet supply chain, positioning itself as an early mover and a significant ex-China producer of the future.
The Company is targeting a large and growing total addressable market (TAM) estimated to be $41.1 billion by 2035, driven by growing demand for rare earth magnets across core commercial and defense industries.
USARE controls mining rights to a world-class heavy rare earth deposit in West Texas; when mining begins, the deposit will play a key role in supplying and scaling the Company’s magnet production facility being developed in Stillwater, Oklahoma.
Scalable, vertically integrated roadmap with plans for combined annualized magnet production capacity of 1,200 tpa by 2025, expanding to ~4,800 tpa by 2028.
The proposed transaction values USARE at a pro-forma enterprise value of $870 million.
Transaction includes an initial ~$35 million PIPE investment, of which $25 million will fund in connection with the signing of the Business Combination Agreement.
NEW YORK, Aug. 22, 2024 (GLOBE NEWSWIRE) -- USA Rare Earth, LLC, a company building out a vertically integrated, domestic rare earth element (“REE”) magnet production supply chain that would include REE, critical minerals and lithium mining and processing, and Inflection Point Acquisition Corp. II (Nasdaq: IPXX) (“IPXX”), a special purpose acquisition company, today announced that they have entered into a definitive business combination agreement (the “Business Combination Agreement” and the transactions contemplated by that agreement, the “Proposed Business Combination”), which will result in USARE becoming a publicly traded company.