American Rare Earths gets permits and funds to build scale in US
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Sydney based American Rare Earths is on the fast track for its plans to meet growing US demand for critical minerals after getting exploration permits for its flagship projects and completing a pivotal capital raise.
American Rare Earths received the highly anticipated exploration permits for its flagship US projects just three days after the almost $6m capital raise was completed with leading funds management firm Fidelity International.
With all regulatory permits and funds received from the raise, American Rare Earths (ASX:ARR) now has a clear pathway to further develop the exploration program at the La Paz and Halleck Creek projects.
“The timing could not be better with the recent capital raising efforts and obtaining the permits to commence drilling at our key projects,” managing director and chief executive officer Chris Gibbs said.
“The opportunity to bring Fidelity onto the register means we can accelerate the planned scope of works and unlock value sooner.
“We are delighted to have the confidence of a high-quality, long term institutional investor such as Fidelity to support us on our journey to build the next major rare earth and critical minerals company”.
The La Paz drilling contractor has already been appointed and will start work in January 2022 at the 890ha project in Arizona.
Exploration work is continuing at Halleck Creek in Wyoming with the maiden drill program planned for Q1 2022.
The approvals come three days after the capital raising was completed.
The raise of approximately $5.7 million after fees has given Fidelity International an initial equity interest of approximately 9.9%, as American Rare Earths seeks to build scale and meet US demand for these critical commodities.
The welcome news comes amid continually rising demand from the world’s growth industries for the magnets produced by rare earths. Products including electric vehicles, renewable energy infrastructure and electronics all need components produced from the minerals.
There are also mounting efforts in the US to reduce its reliance on China for what the Biden Administration has called “critical” commodities.
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.