American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has received the first reimbursement of US$304,000 (~A$450,000) from a Wyoming Energy Authority (WEA) grant totalling US$7.1 million (~A$10.7 million).
This milestone marks ongoing progress in the development of the company’s flagship Cowboy State Mine (CSM) at the Halleck Creek Rare Earths Project in the state of Wyoming, USA.
Use of funds
Funds will be utilised for ongoing initiatives at CSM including exploration drilling, baseline environmental studies and pre-feasibility assessments.
The reimbursement is part of the non-dilutive grant funding received from the WEA to support the exploration and development of the Halleck Creek Project.
“A crucial step”
"We are excited to receive this first reimbursement, which represents a crucial step in executing our plans, CEO Chris Gibbs said.
"This funding will significantly aid our efforts to de-risk the Cowboy State Mine and help us achieve our 2025 goals.”
Underscores commitment
Following the successful approval of the company's grant proposal on June 27, 2024, for A$10.7 million (US$7.1 million) in non-dilutive funding, this reimbursement underscores ARR's commitment to advancing the project.
The grant underscores the potential of the Cowboy State Mine to contribute to Wyoming’s energy strategy and the broader US landscape for clean energy transition initiatives.
"This reimbursement not only reflects our joint commitment to advancing this project but also underscores the potential of the Cowboy State Mine to contribute to Wyoming's energy strategy,” Gibbs said.
"We look forward to continued collaboration and success."
Toward a PFS
American Rare Earths will continue to use the grant funds to advance exploration and development activities at Halleck Creek, focusing on de-risking the project and progressing toward a pre-feasibility study (PFS).