[Ferro-Alloys.com] American Rare Earths managing director Chris Gibbs said: "Our vision is to build the next major rare earth and critical minerals company and play a key role securing supply for the United States of America.”

American Rare Earths Ltd (ASX:ARR) has received firm commitments to raise A$14 million via the placement of shares at A$0.29 each.

The placement was supported by new and existing institutional, professional, and sophisticated investors, both domestic and offshore.

American Rare Earths noted that the investors’ support provides a strong endorsement of the company’s strategy and vision to develop its portfolio of large-scale rare-earth projects in North America.

The company is advancing the Halleck Creek Rare Earths Project in Wyoming, USA and the La Paz Rare Earths Project in Arizona, USA.

American Rare Earths managing director Chris Gibbs said: "Our vision is to build the next major rare earth and critical minerals company and play a key role securing supply for the United States of America.

“The completion of the capital raise provides American Rare Earths with the balance sheet to accelerate exploration efforts at the Company’s North American Projects as it looks to update existing Exploration Targets and define a high tonnage maiden JORC Resource at Halleck Creek.”

"We are delighted the Company’s major shareholder Fidelity International chose to again participate in the offering to maintain their 9.9% holding."

Use of funds

Funds raised under the placement will be used to accelerate the development of the company’s North American rare earth projects, La Paz and Halleck Creek.

American Rare Earths recently released high-value results from the maiden drilling campaign at Halleck Creek.

Based on these results, it appears the existing exploration target for the Halleck Creek project is significantly underestimated.

Resource drilling at Halleck Creek

American Rare Earths is working to upgrade the current exploration target for Halleck Creek.

Drilling permits have been submitted to the Wyoming Department of Environmental Quality.

This drill campaign will be conducted imminently, with the intention to define a significant JORC resource.

Metallurgical test work by Nagrom Laboratories in Perth, under the guidance of Rare Earth Elements (REE) metallurgy expertise from Wood Australia will be undertaken on Halleck Creek ore.

Contracts have been issued and this work will commence imminently.

La Paz test work

Specific to advancing the La Paz project, the initial metallurgical test work by Nagrom Laboratories in Perth, under the guidance of REE metallurgy expertise from Wood Australia, will soon be finalised.

• [Editor:tianyawei]