US — American Rare Earths Limited (ASX:ARR) has announced the receipt of its first reimbursement of over $450,000 (US$304,000) from the Wyoming Energy Authority (WEA) grant.
This milestone marks significant progress in the development of the company’s flagship Cowboy State Mine at the Halleck Creek Rare Earths Project in Wyoming, USA.
The reimbursement is part of the A$10.7 million (US$7.1 million) grant approved by the WEA in June 2024.
This non-dilutive funding will be crucial for advancing the exploration and development of the Halleck Creek Project, which is potentially one of the largest deposits of rare earth materials in the United States.
The funds will be used for several critical aspects of the project’s development:
- Ongoing exploration drilling
- Baseline environmental studies
- Prefeasibility assessments at the Cowboy State Mine site
The grant underscores the strategic importance of the Cowboy State Mine in Wyoming’s energy strategy and the broader US clean energy transition initiatives.
It reflects a shared commitment between American Rare Earths and the state of Wyoming to advance sustainable resource development.
The Halleck Creek Project has shown promising results in recent drilling campaigns.
Assay results from the 2024 drilling program revealed elevated rare earth mineralisation from surface to depths of at least 300 metres, with significant findings including:
- HC24-RM035: 299.1m @ 4,393 ppm Total Rare Earth Oxides (TREO)
- HC24-RM023: 117.5m @ 4,006 ppm TREO
These results indicate that the deposit remains open at depth, suggesting potential for further expansion.
In addition to the WEA grant, American Rare Earths has secured a non-binding Letter of Interest from the Export-Import Bank of the United States (EXIM) for a debt funding package of up to $456 million.
This potential funding aligns with the initial capital expenditure estimate for the Cowboy State Mine as detailed in the March 2024 Scoping Study.
Chris Gibbs, CEO of American Rare Earths, expressed enthusiasm about the reimbursement, stating: “This funding will significantly aid our efforts to de-risk the Cowboy State Mine and help us achieve our 2025 goals.
“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.”
As American Rare Earths continues to advance its exploration and development activities at Halleck Creek, the focus remains on de-risking the project and progressing towards a pre-feasibility study.
The company’s efforts are poised to play a significant role in the US rare earths industry and contribute to the nation’s critical mineral supply chain.