Mentioned:
REalloys is building a vertically integrated supply chain for rare earth elements in America. Which is exactly why they’ve just cut a new offtake deal with one of the highest grade rare earth projects in the United States.
What’s happening:
- REalloys (NASDAQ: ALOY) has entered into a new deal with U.S. Critical Materials to secure 10% of the total offtake from their flagship Sheep Creek rare earth project located in Ravalli County, Montana
Why it matters:
- U.S. Critical Materials’ Sheep Creek project is widely considered to be the single highest grade rare earth deposit in the Untied States of America
Going deeper:
- U.S. Critical Materials’ has independently validated average grades of approximately 9% total rare earth oxide across sampled mineralized zones within their 7,000 acre land package at Sheep Creek
- U.S. Critical Materials’ Sheep Creek project also contains confirmed deposits of both dysprosium and terbium, which are two of the most important heavy rare earth elements for producing high performance permanent magnets that are used in fighter jets, missile guidance systems and military hardware
- REalloys just recently made major waves when they publicly stated they are building out the largest metallization facility outside of China for rare earth refining and processing after successfully raising $50M USD at $18.50 USD per share in an equity financing round to scale up their rare earth magnet production capabilities
The intrigue:
- Former Chief of Staff to the United States Secretary of Defense Joe Kasper also just recently joined REalloys’ advisory board
The fine print:
- The new offtake agreement between REalloys and U.S. Critical Materials is a non-binding memorandum of understanding and both companies have publicly stated they are aiming to negotiate a definitive long term deal within the next 12 months
