US Critical Metals to Acquire Stake in Two Rare Earth Projects in Montana and Idaho
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US Critical Metals (USCM) and US Critical Materials are set to earn-in up to 75 percent equity interest in two rare earth projects in Montana and Idaho.
The companies will invest in the Sheep Creek property in Ravalli County, Montana, and the Lemhi Pass Trail property in Lemhi County, Idaho.
Through the agreement, USCM and US Critical Materials will form a new entity called US Rare Elements Corp. (USRE)
USRE will hold the properties and will be jointly managed by USCM and US Critical Materials, with two board members from each party, and equal voting rights in the option period.
USCM will obtain 25 percent of USRE, in exchange for a $300,000 cash payment to USRE within five business days of closing, and $1,500,000 in capital contributions 16 months after closing.
The company may acquire an additional 25 percent equity interest in USRE, for a $200,000 cash payment, and $3 million in capital contributions 40 months after closing.
“This partnership positions USCM with increased exposure to commodities essential to U.S. security of supply and national security interests,” said USCM CEO and Director Darren Collins.
“Consistent with our Clayton Ridge Lithium Property in Nevada and Haynes Cobalt Property in Idaho, these rare earth properties in Montana and Idaho have strong grade indications and significant exploration potential,” added Collins.
Sheep Creek project is located in Ravalli County, southwest Montana, and covers 54 lode claims representing about 1,050 acres of the total land package.
Through its exploration activities last year, US Critical Materials has identified more than 50 carbonatite dikes in the Sheep Creek exploration area.
The Lemhi Pass project is located in Lemhi County in central-east Idaho, close to several other explorers within an area known to host rare earth mineralization.
The two rare-earth properties are located in the Montana-Idaho alkalic belt, comprising at least eleven of the critical risk elements defined by the U.S. Geological Survey.
Alongside neodymium and praseodymium as key elements, the properties also host cerium, dysprosium, europium, gadolinium, lanthanum, niobium, scandium, strontium, and gallium.
The elements are essential for the production of electric vehicle batteries, various critical technologies, and military and defense applications.
USCM said that the transaction will expand its asset portfolio with rare earth elements and provides diversified exposure to multiple discovery-focused projects in the U.S.
Source: NS Energy
About US Critical Metals
USCM is focused on mining projects that will further secure the U.S. supply of critical metals and rare earth elements, which are essential to fueling the new age economy. Pursuant to option agreements with private Canadian and American companies, USCM’s assets consist of three agreements, each providing USCM with the right to acquire interests in four discovery focused projects in the U.S. These projects include the Clayton Ridge Lithium Property located in Nevada, the Haynes Cobalt Property located in Idaho, the Sheep Creek located in Montana, and Lemhi Pass located in Idaho. A significant percentage of the world’s critical metal and rare earth supply comes from nations with interests that are contrary to those of the U.S. USCM intends to explore and develop critical metals and rare earth assets with near- and long-term strategic value to the advancement of U.S. interests.
To stop by US Critical Metals’ website, CLICK HERE
About US Critical Materials Corp.
Materials Corp. is a private rare earths exploration and development company with holdings in Montana and Idaho. Future development of the Ppoperties includes additional exploration, geologic mapping, sampling and analysis, and drilling with the objective of completing a future resource and reserve estimation. The deposits in Sheep Creek are unique due to low levels of thorium, as discussed above, which potentially allows mining with minimal damage to the environment. US Critical Materials goal is to develop its properties with strategic partners who have the capital and expertise to explore, mine and extract the critical minerals. Materials Corp. is based in Salt Lake City, Utah.
To stop by US Critical Materials’ website, CLICK HERE
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