American Rare Earths (ASX: ARR), a critical minerals company at the forefront of reshaping the U.S. rare earths industry, has announced it has received firm commitments for a placement to raise A$15.0 million. The placement involves approximately 46.9 million new fully paid ordinary shares at an issue price of A$0.32 per share. Proceeds from the placement will be used to accelerate the development of the Halleck Creek project in Wyoming, U.S.A., one of the largest rare earths deposits in the U.S.
The placement saw strong support from existing shareholders as well as new institutional, professional, and sophisticated investors globally. According to the company, the raised funds will specifically support the development of a demonstration plant at Halleck Creek for the beneficiation process, in-fill drilling at the Cowboy State Mine for future studies, and various engineering works. The company highlighted that this strategic opportunity allows them to secure funds for the next stage of project development beyond the Pre-Feasibility Study.
Richard Hudson, Chairman of American Rare Earths, commented on the placement, emphasising the critical timing amidst growing domestic growth catalysed by government action to counter China’s rare earths dominance. He stated that the significant support from both existing and new investors reaffirms their belief in Halleck Creek’s potential to supply the rapidly growing permanent magnet production capacity in the U.S. Hudson also expressed confidence in the U.S. management team’s ability to bring the next domestic rare earth mine online, leveraging the advantage of permitting on State of Wyoming Lands.
Placement shares will rank equally with existing shares on issue and are expected to settle on July 30, 2025. Bell Potter Securities Limited and BMO Capital Markets Limited served as Joint Lead Managers for the placement, with Bell Potter also acting as Sole Bookrunner and Canaccord Genuity (Australia) as Co-Manager. In addition to the placement, the company announced a change in leadership, with CFO Megan McPherson now overseeing the Australian corporate headquarters, reflecting the company’s increasing focus on North American operations and the Halleck Creek project.
