American Rare Earths declines $400 million SPAC acquisition bid

Explorers in Wyoming are on a mission to find rare earth materials, aiming to position the United States as a strong contender against China’s monopoly in the market. With only one producing rare earths mine in the country, Mountain Pass in California, owned by MP Materials, the search for alternative sources is crucial.

American Rare Earths, headquartered in Australia, recently revealed the promising results of a scoping study for Halleck Creek in Wyoming. The study confirmed the project’s potential to become a world-class rare earth elements site, with a substantial mineral resource estimate.

According to the updated estimate, Halleck Creek boasts 2.34 billion tonnes grading 3,196 parts per million (ppm) TREO, including valuable neodymium and praseodymium oxides. This translates to an impressive 7.48 million tonnes of contained TREO, with significant amounts falling within the measured and indicated categories.

The remarkable increase of 128% in the estimate compared to the previous year showcases the project’s significant growth potential. Despite receiving interest for a buyout and listing on NASDAQ through a SPAC merger, American Rare Earths has opted to prioritize maximizing returns for shareholders while maintaining control over the project for now.

Chairman Richard Hudson emphasized the strategic significance of Halleck Creek, highlighting the company’s commitment to sustainable resource development and shareholder value. The positive market response was evident with American Rare Earths shares closing over 16% higher on the ASX, reflecting investor confidence in the project’s future prospects. With a market capitalization of A$155 million, American Rare Earths holds promise as a key player in the rare earths industry.