Mentioned:
REalloys has just completed a massive new capital raise. And they’re planning to use it to accelerate their domestic rare earth processing and magnet production ambitions.
What’s happening:
- REalloys (NASDAQ: ALOY) has successfully raised $100M USD in a new equity financing round led by Blackstone and Citadel
By the numbers:
- REalloys issued approximately 7M common shares at a price of $14.25 as part of the new funding round
Why it matters:
- The United States Army just recently made major waves when they conditionally selected REalloys to build a rare earth separation facility at the Tooele Army Depot located in Utah
Going deeper:
- REalloys will design, finance, build and operate the new rare earth separation plant as part of the new partnership with the United States Army to produce heavy rare earth oxides such as dysprosium and terbium for defense-critical magnet materials
- Critical Metals (NASDAQ: CRML) and REalloys have a long term offtake deal in which Critical Metals will supply REalloys with 15% of the total rare earth feedstock from their Greenland based Tanbreez project which will be used for the domestic processing and production of rare earth oxides, metals and magnet alloys
- REalloys is currently building out the largest heavy rare earth metallization facility in North America and is focused on on supplying the United States military with strategic rare earth stockpiles that do not have any nexus to China or supply chain risks from non-allied nations
The intrigue:
- REalloys also previously notably won a contract from the United States Defense Logistics Agency to design a modular plant to produce samarium and gadolinium metal for rare earth magnets
