American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has received approval for a grant from the State of Wyoming, netting A$10.7 million (US$7.1 million) in funding from the state to advance the Cowboy State rare earth element (REE) mine at the Halleck Creek Project.
The non-dilutive funding will be awarded through a three-year agreement as part of a Matching Funds arrangement.
"Investing in future"
“Wyoming is investing in the future of the energy industry and exploring new opportunities,” said Wyoming Energy Authority (WEA) executive director Rob Creager.
“The American Rare Earths Mine, supported through the Wyoming Energy Authority and the State of Wyoming, will give us greater insight into potentially one of the largest deposits of rare earth materials in the United States.
“And, like previous grant recipients, we look forward to what this project will bring our state and nation.”
Read: American Rare Earths continues de-risking Halleck Creek; drilling next month
Advancing Cowboy State Mine
The funding will go to costs incurred in developing the Cowboy State Mine, including:
- Further exploration drilling and bulk sampling on state mineral leases.
- Baseline environmental studies for state permitting.
- Pilot processing plant, with a specific focus on pre-concentration of Halleck Creek ore.
- Pre-feasibility studies and economic assessments.
- Community impact assessments.
"Shared vision"
"This significant grant not only underscores the technical and economic potential of the Cowboy State Mine at Halleck Creek but also represents a shared vision for advancing sustainable resource development,” American Rare Earths chair Richard Hudson said.
“The A$10.7 million in non-dilutive funding will accelerate our exploration and development efforts, ensuring we meet our project milestones.
“This partnership reinforces Wyoming's leadership in the US energy and mining sectors, and we are excited to contribute to the state's economic and environmental sustainability through this strategic initiative.
“The funding further validates the direction the company has taken and gives us even greater optimism around the project.”
Terms of agreement
Under the agreement, ARR will receive A$10.7 million in funding conditional upon a 1:1 match of government and private dollars from the company, meaning every dollar American Rare Earths spends on developing the Cowboy State Mine will be matched by the State of Wyoming.
The grant has a term of three years or until the funding has been spent on the company’s project.
As part of the arrangement, ARR will produce technical reporting detailing findings and recommendations for future work programs to the WEA.
"We are thrilled to receive this support from the State of Wyoming and the WEA, which not only represents technical validation of the project by industry experts at the ERC and WEA, but a shared commitment to permit and develop a commercial rare earth mine and processing facility in Wyoming,” American Rare Earths CEO Donald Swartz said.
“This funding announcement comes on the heels of our most recent project update and this non-dilutive funding will be used to meet those objectives.
“Wyoming is committed to lead the US energy industry and support like this is why the state has been so successful in attracting investment in exploration and mining across the resource sector.
“This grant will assist the company in expediting its project development of the Cowboy State Mine, and we are excited for things to continue to progress.”