American Rare Earths Ltd (ASX:ARR) has executed a non-dilutive cross-listing as it continues to advance its US project portfolio.
The materials stock has officially been accepted to trade on the OTC Markets, headquartered in New York, on the 'QB' level.
Cross-listing to the OTCQB, where American Rare Earths now trades as ARRNF, gives the company an opportunity to build visibility, expand liquidity and diversify its shareholder base in the US on an established public market.
The OTC is the largest alternative trading system in the US, with more than 11,000 securities quoted on that market.
“Logical next step”
Speaking to the listing, American Rare Earths managing director Chris Gibbs said: "As the company's most advanced projects are in the US, providing American investors with the opportunity to participate was a logical step.
“Doing it in a non-dilutive manner only adds liquidity and strength to the positions of our existing shareholders."
The ASX remains American Rare Earths’ primary listing, and it will make its local share market reporting available to ARRNF holders in the US.
Canaccord Genuity (TSX:CF, LSE:CF) managed the cross-listing process, but the move required no additional capital raises or share issues to complete.
American Rare Earths is also cross-listed on the Frankfurt Stock Exchange, where it trades under the ticker 1BHA.
The company has also flagged it will apply to the Depository Trust Company (DTC) for DTC eligibility, meaning its OTCQB shares will be freely traded and fungible.
The stamp of approval would greatly simplify the process for North American investors who trade the company's common shares.
Making its mark in US’ rare earths sector
American Rare Earths is the only Australian company listed on the ASX with assets in the US’ growing rare earth metals sector.
Here, the industry is firming up as an alternative international supply chain to China's market dominance, which is strongly felt in a global rare earth market that’s expected to balloon to US$20 billion by the mid-2020s.
ARR owns 100% of the world-class La Paz Rare Earth Project, located 170 kilometres northwest of Phoenix, Arizona.
As a large tonnage bulk deposit, La Paz is also potentially the largest rare-earth deposit in the USA and benefits from containing exceptionally low penalty elements, such as radioactive thorium and uranium.
ARR plans to deliver its first preliminary economic assessment for La Paz by 2022 and is working with leading US research institutions to ensure La Paz's mineral profile is incorporated into emerging, advanced rare earth processing technologies.
ARR acquired a second US rare earth element asset — the Searchlight Rare Earths project — in the first half of 2021.
It picked up a third property, the Halleck Creek project in Wyoming, in June of this year.