American Rare Earths has received firm commitments for a $14m placement from global institutional, professional and sophisticated investors to fast-track development at its key projects.

In a strong endorsement of the Australian-based company’s strategy the placement attracted strong demand from some high-quality institutions, including long-term and ESG-focussed investment fund Fidelity.

The fresh capital will enable American Rare Earths’ (ASX:ARRR) to accelerate exploration and development at its rare earths projects as the company moves closer to development and becoming a major supplier of the critical minerals in the North America.

The US is currently on a multi-billion-dollar drive to develop a domestic rare earths supply chain for the minerals crucial to the clean energy transition, advanced communications and national security.

Right place, right time

This places ARR at the right place at the right time, an advantage it’s leveraging by supporting US Government supported R&D projects on sustainable rare earths separation and processing.

ARR will now ramp up resource definition and expansion drilling at Halleck Creek in Wyoming and La Paz in Arizona, both of which have the potential to be two of the largest rare earth deposits in North America. The completion of metallurgical test work, which so far has been highly encouraging, as well as economic assessments and feasibility studies for its projects will also be fast tracked.

Both projects are focused on the high-value magnet metals and have negligible levels of penalty elements uranium and thorium.

American Rare Earths Managing Director, Chris Gibbs, said: “Our vision is to build the next major rare earths and critical minerals company and play a key role securing supply for the United States of America.

“The completion of the capital raise provides American Rare Earths with the balance sheet to accelerate exploration efforts at the Company’s North American projects as it looks to update existing exploration targets and define a high tonnage maiden JORC Resource at Halleck Creek.

“We are delighted the company’s major shareholder Fidelity International chose to again participate in the offering to maintain their 9.9% holding.”

Solid grounds for growth

ARR recently released outstanding results from the maiden drilling campaign at Halleck Creek which strongly indicated the existing exploration target for the Halleck Creek project is significantly underestimated.

The company working to upgrade the current exploration target for the project in the mining friendly state of Wyoming and looks forward to providing a market update in the near term.

Drilling permits for a follow-up drill campaign have been submitted with the Wyoming Department of Environmental, with the intention to define a significant JORC resource.

Additionally metallurgical test work by Nagrom Laboratories in Perth, under the guidance of Rare Earth Elements (REE) metallurgy expertise from Wood Australia will be start on Halleck Creek ore imminently.

To advance the La Paz project, the positive initial metallurgical test work will soon be finalised.

Also at La Paz, permitting applications are being prepared for La Paz to allow further drilling in the Southwest area of the project. Recent drilling results confirm potential for a significant resource expansion at La Paz.

Meanwhile ongoing activity is under way in the US to identify and secure the next major rare earth projects.




This article was developed in collaboration with American Rare Earths, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.