Published: February 27, 2024 |

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American Rare Earths has raised A$13.5 million (US$8.857 million) via a strongly supported institutional placement, providing a significant runway to execute on project development milestones to advance its flagship Halleck Creek Rare Earths Project in Wyoming.

The funding will support the company in developing environmentally friendly and cost-effective extraction and processing methods to meet the rapidly increasing demand for resources essential to the clean energy transition and U.S. national security.

Strongly supported by new and existing institutional, professional, and sophisticated investors, both domestically and offshore, the company has received firm commitments for a placement of 45 million new fully paid ordinary shares at an issue price of A$0.30 to raise the A$13.5 million.

Proceeds from the placement, together with existing cash, will be used to fund the continued development of the Halleck Creek project. Specifically, this will include mineral resource and extensional drilling, pre-feasibility study (PFS), metallurgical test work and process development, heritage/permitting/environmental activities, and for general working capital purposes.

“I am thrilled to announce the successful completion of our institutional placement, which has raised A$13.5 million. The overwhelming support from both existing shareholders and new institutional investors underscores the confidence in our vision and the potential of our projects, in particular the Halleck Creek Rare Earth Project,” said American Rare Earths CEO Donald Swartz.

“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,” added Swartz.

“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 U.S. national security. 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,” concluded Swartz.

Source: Proactive Investors

American Rare Earths is a leading explorer and developer of rare earth elements with a strong focus on developing sustainable and cost-effective extraction and processing methods. To meet the rapidly increasing demand for resources essential to the clean energy transition, American Rare Earths is developing its 100 percent owned magnet metals projects, Halleck Creek in Wyoming, and La Paz in Arizona, both with the potential to be among North America’s largest rare earth deposits. The company is concurrently evaluating other exploration opportunities while collaborating with U.S. Government supported R&D to develop a sustainable domestic supply chain for the renewable future.

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