U.S.A — American Rare Earths Limited (ASX:ARR) has unveiled a strategic realignment aimed at accelerating the development of its Halleck Creek Project in Wyoming, USA.
The company has formed a new wholly-owned subsidiary, Wyoming Rare USA Inc. (WRI), which will focus exclusively on advancing the Halleck Creek Project and enhancing its appeal to US-based investors and partners.
The Halleck Creek Project, recognised as one of the largest rare earth deposits in North America, presents substantial growth potential.
More than 75 per cent of the mineralised zones are yet to be drilled, and the deposit remains open at depth.
WRI will concentrate on developing the Cowboy State Mine within the Halleck Creek Wyoming State Tenements.
The project has recently received a significant boost with a US$7.1 million grant from the State of Wyoming, announced on June 27, 2024.
A recent scoping study has indicated robust financial prospects for the project:
- Net Present Value (NPV): US$673.9 million
- Internal Rate of Return (IRR): 22.5 per cent
- Payback period: 2.9 years
WRI will be led by an experienced team, including:
- Sten Gustafson as Chairman
- Joe Evers as President
- John Mansanti as Senior Advisor
Richard Hudson, Chairman of ARR, emphasised the significance of this strategic move: “This new focus represents a pivotal moment for ARR. By creating a dedicated subsidiary for the Halleck Creek Project, we are positioning the Company to unlock significant value and accelerate the development of a critical resource for the US.”
The Halleck Creek Project’s focus on critical minerals, essential for clean energy transition, aligns with national security interests, making it a crucial asset for North America.
This strategic realignment is expected to streamline operations and potentially increase long-term shareholder value.
