Wyoming has become an exploration hotbed for these materials in hopes it could become America’s answer to China’s grip on the market. The United States has only one producing rare earths mine, Mountain Pass in California, owned by MP Materials.
Australian-headquartered American Rare Earths published last month the results of a scoping study for Halleck Creek, which confirms its potential to become a world-class rare earth element (REE) project.
Based on a mineral resource estimate updated in February, Halleck Creek holds 2.34 billion tonnes of material grading 3,196 parts per million (ppm) total rare earth oxides (TREO), including neodymium (Nd) and praseodymium (Pr) oxides, for 7.48 million tonnes of contained TREO. This includes 1.42 billion tonnes in the measured and indicated category.
The new figures represent a 128% increase over the 2023 estimate, at a level of 3,295 ppm TREO.
The proposal would have resulted in Wyoming Rare (USA) Inc. being listed with the SPAC as a separate entity on the NASDAQ.
In a news release, the board of ARR is aware of the potential benefits of this type of proposal as it follows a similar successful pathway of MP Materials, who also achieved listing of Mountain Pass utilizing a combination with a SPAC.
“However, the Board is mindful of the significant potential of Halleck Creek, and the need to maximize returns to shareholders, while minimizing dilution and has declined to advance at this time,” he said.
“The inbound interest received in American Rare Earths underscores the immense value and strategic significance of our Halleck Creek rare earth project,” ARR Chairman, Richard Hudson said in the statement.
“As we navigate potential pathways for growth, we remain committed to maximizing returns for our shareholders while advancing our mission of sustainable resource development,” Hudson said.
By market close Friday, American Rare Earths stock was up over 16% on the ASX. The company has a A$155 million ($101m) market capitalization.
