American Rare Earths (ASX:ARR) has tapped investors for $13.5 million it says will be used to develop the Halleck Creek Rare Earth Project in Wyoming.
The Sydney-based explorer and project developer will issue 45 million shares to both new and existing investors at $0.30 each, representing a 5% discount to the company’s 10-day volume weighted average price.
CEO Donald Swartz says the “overwhelming support” underscores the confidence investors have in the company’s vision.
“This placement provides us with the capital to advance our flagship project, Halleck Creek, towards delivering a secure supply of critical minerals to the North American supply chain. We are committed to executing on our project development milestones and are grateful for the support that enables us to further our mission.”
American Rare Earths says the proceeds will be used to fund the development of Halleck Creek, including mineral resources and extensional drilling, a pre-feasibility study, metallurgical testwork and process development, and heritage, permitting and environmental activities.
“With a focus on environmentally friendly and cost-effective extraction methods, we are well set to meet the escalating demand for resources essential to the clean energy transition and US national security,” Swartz says.
“This milestone marks a pivotal moment in our journey, and we are excited for the opportunities that lie ahead as we continue to drive value for our shareholders and stakeholders alike.”
Earlier this month, American Rare Earths unveiled a 64% increase in in-situ resources at Halleck Creek to 2.34 billion tonnes at 3,196 parts per million (ppm) total rare earth oxides (TREO).
“Adding ARR’s outstanding drilling results from Sept/Oct 2023 to the geological model for Halleck Creek expanded laterally and vertically,” the company said in an announcement on 7 February.
“The Sept/Oct 2023 drilling also provided data to geostatistically define measured resource extents at Overton Mountain and redefine indicated resource extents at Red Mountain with high degrees of geological confidence. Measured and indicated resource estimates increased by 795 million tonnes (128%), inferred resource estimates increased by 117 million tonnes (15%).”
In addition to the Halleck Creek Project, American Rare Earths owns the La Paz Project in Arizona, the Beaver Creek Project in Wyoming, and the Searchlight Project in Nevada.
Write to Oliver Gray at Mining.com.au
Images: American Rare Earths
