American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has secured firm commitments for a A$15 million institutional placement to advance the Halleck Creek Rare Earths Project in Wyoming, United States — one of the largest rare earth deposits in the country. The placement, priced at A$0.32 per share, received strong backing from both existing shareholders and new institutional investors.
Funds will be used to accelerate development of a demonstration plant, in-fill drilling and engineering works, as ARR aims to position itself as a major domestic supplier to the US magnet industry.
“This capital raise comes at a critical time in the US rare earths industry as domestic growth is catalysed by the government’s decisive action to counter China’s global rare earths dominance,” American Rare Earths chairman Richard Hudson said.
“The significant support of the placement by existing shareholders, along with new investors, reaffirms our belief that Halleck Creek’s immense potential positions the company to supply the rapidly growing permanent magnet production capacity in the US.
“Following my recent visit to Wyoming, I continue to have full faith in the US management team’s ability to bring the next domestic rare earth mine online by leveraging the advantage of permitting on State of Wyoming Lands, which I believe is unique to our project.”
Placement details
The A$0.32 issue price represents an 18.8% discount to the 10-day volume weighted average price (VWAP). Approximately 46.9 million new fully paid ordinary shares will be issued, with settlement expected on July 30, 2025.
Bell Potter Securities and BMO Capital Markets acted as Joint Lead Managers, with Bell Potter also serving as Sole Bookrunner. Canaccord Genuity Australia was Co-Manager. The Joint Lead Managers will receive a 2% management fee and a 4% capital raising fee.
Use of funds
Funds raised will be allocated to:
- construction of a demonstration plant to support the beneficiation process at Halleck Creek
- in-fill drilling at the Cowboy State Mine for use in future studies beyond the Pre-Feasibility Study
- engineering and optimisation activities to support long-term project development
This work builds on the company’s goal to bring a new domestic rare earth mine into production.
Leadership transition reflects US strategic focus
ARR recently announced the resignation of managing director and CEO Chris Gibbs, with CFO Megan McPherson taking over oversight of the Australian headquarters. The leadership shift underscores a growing focus on the US, where Wyoming Rare (USA) Inc. President Joe Evers continues to lead local operations.
Evers remains responsible for advancing test mining, processing optimisation and publication of the Pre-Feasibility Study, along with the construction of the demonstration plant.
Strategic roadmap and upcoming catalysts
With long lead-time equipment already ordered, ARR is positioned to deliver several key milestones:
- test mining at Cowboy State Mine to provide bulk ore samples for optimisation and plant feedstock
- completion of ongoing mineral processing optimisation
- publication of the Pre-Feasibility Study
- continuation of environmental and water baseline studies
- submission of permit to mine application
- commencement of demonstration plant construction