American Rare Earths Receives Key Exploration Permits and Completes Capital Raise

With the issuance of all shares, American Rare Earths (ARR) has secured $6.1 million capital raise and says it has secured key exploration permits and it has sufficient funds to advance planned exploration activities at its La Paz and Halleck Creek projects.

American Rare Earths Ltd. has been granted a series of exploration permits on its flagship rare earth properties in Arizona and Wyoming. With these permits, the specialty metals exploration company can conduct ground-disturbing activities on its La Paz and Halleck Creek assets.

With all regulatory permits and approvals in place, the company now has a clear pathway to advance its drilling activities and further develop its exploration program on what it considers to be its two key rare earth projects.

The company also revealed that its recently announced capital raise with Fidelity International has been completed, bringing the investor's stake to 9.94%. With all shares issued, ARR has raised $6.1 million and says it has sufficient capital to advance planned exploration activities at its La Paz and Halleck Creek projects.

Commenting on the development, Chris Gibbs, Managing Director and CEO of American Rare Earths, said, "The timing could not have been better with the recent capital raising efforts and obtaining permission to begin drilling on our key projects. The opportunity to add Fidelity to the register means we can accelerate the scope of planned work and unlock value sooner."

"We are pleased to have the confidence of a high quality, long-term institutional investor like Fidelity to support us on our journey to build the next major rare earth and critical minerals company."

The company is the only Australian company listed on the ASX with assets in the growing rare earth metals sector in the US. This specialty metals unit is partnering with an emerging, alternative international supply chain in hopes of challenging China's dominance of the rare earths market, and is expected to increase its share of a market that is expected to swell to $20 billion by the mid-2020s.

ARR is the sole owner of the world-class La Paz Rare Earth Project located 170 kilometers northwest of Phoenix, Arizona. A large tonnage bulk deposit, La Paz may also be the largest rare earth deposit in the United States and benefits from containing exceptionally low penalty elements such as radioactive thorium and uranium.

With the key exploration permits and sufficient capital raise, ARR plans to submit its first preliminary economic assessment of La Paz by the end of 2022 and is working with leading U.S. research institutions to ensure that La Paz's mineral profile is incorporated into emerging U.S. advanced rare earth processing technologies.

American Rare Earths acquired a second rare earth element asset, the Searchlight Rare Earth Project, in the first half of 2021, and ARR acquired a third rare earth element project in North America, the Halleck Creek Project in Wyoming, in June of this year.

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