USA Rare Earth (USAR.US) intends to acquire the remaining equity of the Round Top rare earth mine, with an estimated transaction valuation of approximately $73 million.

According to informed sources, rare earth company USA Rare Earth (USAR.US) is planning to acquire the remaining minority stake of a rare earth mine in Texas through an all-stock transaction, with an estimated value of about $73 million. The sources said that USA Rare Earth will purchase all the outstanding shares of Texas Mineral Resources Corp., with the transaction price of approximately 3.8 million shares of USA Rare Earth common stock. This acquisition will make USA Rare Earth the sole operator of the Round Top project, which is known as the richest heavy rare earth deposit in North America. The sources added that gaining 100% ownership of the project may be crucial for the company to accelerate its latest proposal to develop Round Top into a commercial-scale mine. USA Rare Earth positions itself as a solutions provider from "mine to magnet." Permanent magnets are core components in fighter jets, wind turbines, electric vehicles, and a range of other critical products. In January of this year, USA Rare Earth signed a non-binding agreement worth $1.6 billion with the U.S. Department of Commerce to help fund the development of the project, while also doubling the capacity of its magnet manufacturing facility in Oklahoma. In addition to government funding support including a proposed $277 million federal incentive package and a $1.3 billion senior secured loan, USA Rare Earth has also announced raising $1.5 billion in private sector investment to support mining, processing, metal manufacturing, and magnet production expenses. Chief Financial Officer Rob Steele stated in an investor conference call in January that the company expects operational losses of between $56-62 million by 2025.