American Rare Earths
Financials:
Primary ticker: ASX:ARR, OTC:ARRNF, FSE:1BH
Stage of development: Exploration, Development
Primary minerals: Rare Earths
Project to promote: La Paz Project & Halleck Creek Project
Project location: USA: United States of America, Arizona & Wyoming
Website: www.americanrareearths.com.au
Corporate video: Click here
Corporate presentation: Click here
American Rare Earths Limited is a rare earths exploration and development company in the growing rare earth metals sector of the United States of America. Our vision is to create the next major rare earths and critical materials company to help onshore supply for the United States of America. ARR owns 100% of the world-class La Paz rare-earth Project, located 170km northwest of Phoenix, Arizona. As a large tonnage, bulk deposit, La Paz is potentially the largest, rare-earth deposit in the USA and benefits from containing exceptionally low penalty elements such as radioactive thorium and uranium. The company is a member of the US Critical Materials Institute and is working with leading USA research institutions. In June 2021 the company acquired the Halleck Creek Project in Wyoming.
Cash: AUD$8.16M
Debt: Nil
Major shareholders:
Hill Family Group Pty Ltd – 14.47%
Fidelity Investments – 9.8%
BNP PARIBAS – 3.02%
IPS NOMINEES LIMITED – 1.89%
AIKEN & ASSOCIATES LIMITED 1.29%
Management ownership – 0.5%
Management Profile
Chris Gibbs – CEO & Managing Director
Chris Gibbs has over 28 years experience in the resource sector within Australia, Canada, USA, South America, Africa and Europe. He is an innovative leader with a proven track record for implementing organization change and delivering business results. Prior to joining the company he was Vice President General Manager for Argonaut Gold’s Canada business. He has also held various leadership roles with Centerra Gold and Thompson Creek Metals, including VP of Operations, VP Operational Excellence and VP General Manager of the Langeloth Metallurgical Company in Pittsburgh and VP General Manager of the Endako Mine in British Columbia. Chris has also held various leadership roles with Barrick Gold, Placer Dome and Millennium Chemicals. He holds a Master’s Degree in Project Management and a Bachelor of Business Degree from Curtin University of Western Australia.
Marty Weems serves the American Rare Earths group of companies as President – North America. With projects in Nevada, Wyoming and Arizona, he leads development of critical materials for National Security and Renewable Energy while on-shoring jobs in this emerging industrial supply chain. The goal is bold: Rare Earths & Scandium for an environmentally responsible supply chain for Electric Vehicles, Wind Turbines and Solid Oxide Fuel Cells. He is a global executive with MBA and Master of Science (MSc) degrees from The University of Tennessee. Marty’s leadership has spanned entrepreneurial businesses and large corporations including Verifone (payment technology, IoT, voice enabled commerce, Artificial Intelligence), Turbulence and Seed Spot (Startup Incubators), EXOS (healthcare, technology), and Novartis (Pharmaceuticals, Global Fortune 200). Success resulting in EXOS winning the President’s (POTUS)“E” Award for Export Excellence and being recognized as a FastCompany magazine “Most Innovative” company three separate years. His business experience spans more than 20 countries and on 5 continents.
What is your rationale for taking part 121 Mining Investment?
In December last year Fidelity took a 9.8% placement in the company and we are well funded to deliver on the 2022/23 programs. We recently added three new US based Directors and were cross listed on the on the US OTCQB market. Earlier this year we became a member of the US Critical Materials Institute and are presently working with a number of US Research Institutions to help onshore supply of rare earths to the US. Its our objective to increase our US Investor base as we continue to develop the US based projects and grow the company.
What recent news would you like to highlight to investors attending?
14 February 2022 – ARR Partners with US Government Funded R&D Programs
5 February 2022 – Drilling Commenced in the new SW Zone of La Paz – a 742 – 928 million tonne exploration target
12 January 2022 – Became Team Member of the Critical Materials Institute
16 December 2021 – Exploration Permits Approved to advance flagship projects in Arizona and Wyoming
6 December 2021 – Strategic Capital Raising to Fidelity International
23 November 2021 – Non Dilutive US Cross Listing on OTCQB Market
26 August 2021 – High Grade Surface Sampling at Halleck Creek
17 August 2021 – Magnetic Separation Increases TREE Grade by 216% at La Paz
3 August 2021 – Drilling at La Paz Delivers Indicated Resource Estimate Increase of 117%
What are your key goals for the next 3, 6 and 12 months?
3 Months:
Complete mineral processing /metallurgy testing for La Paz
Complete Drilling the new ore body at the La Paz Project SW Zone
Commence Maiden Drill Program at the Halleck Creek Project
6 Months:
La Paz Scoping study
Commence further resource expansion drilling (depth & lateral) expansion, Geotech, H2O investigations at La Paz
Commence Metallurgical Test-work on Halleck Creek Ore
Commence further drilling at Halleck Creek
12 Months:
PEA for the La Paz Project
Maiden Jorc Resource for Halleck Creek
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
Market Price – we are a price taker. China still being the dominant player in the rare earth industry can influence price. As a price taker we need to mitigate the risk with a focus on reducing processing and mining costs. We are partnering with R&D researchers who are exploring new technologies and opportunities to transform the RE industry with new technology/advancements to help reduce costs. As a member of the Critical Materials Institute we can gain access to new technologies and the opportunity to be involved. With low thorium content costs can also be reduced by not having to process penalty elements. There are a number of cost opportunities and we will continue to progress these as part of the PEA. At some stage in the future we may consider off take agreements but its still too early in the process. We will also be explore tax incentives and government funding opportunities.
US Government Support – Currently this is an opportunity as there is a huge focus by the US government on the rare earths and the critical minerals. However this is also a risk. As one of the only two rare earth focused companies members of the US Critical Materials Institute we now have a seat at the table and can contribute to future strategies. We are also focused and have resources on government relations and stakeholder management. We are well established and presence in the US, with US based Directors and a local leadership team.
Metallurgy & Technology – In the rare earth industry metallurgy is key and the question with any rare earth deposit is if you can you process it economically. We have seen good results to date from earlier test work on surface samples with the ore responding well to magnetic separation. We have metallurgical test-work in progress under the guidance of Wood and Nagrom in Western Australia. One of the key risks in rare earths is high thorium and penalty elements. We are fortunate with our ore having extremely low levels of penalty elements which makes it attractive to new R&D efforts.
New Technology – with significant funding and focus on the rare earths industry new technology is a risk. We are well positioned as a member of the US Critical Materials Institute (CMI) and working with a number of US institutions who are using our feedstock in their R&D programs. As a member of the CMI we have access to new technology and are in the drivers seat with any new technology already using our feedstock as part of their R&D efforts.
What do you think makes your company such a compelling investment?
1. We have two of the potentially largest rare earth projects/deposits in the United States. The La Paz project has a JORC resource of 170 Mt and exploration targets that could expand the resource beyond a Billion tonnes. The Halleck Creek Project is an early stage rare earths project with approximately 308 to 385 million tonnes as an exploration target. There is significant upside to expand these resources with the deposits open at depth and laterally. Drilling permits are approved and La Paz is currently drilling in the new SW zone. The Halleck Creek maiden drill program is due to commence in March 2022.
2. Location, location, location. The projects are in the US mining friendly jurisdictions and with good infrastructure (Arizona and Wyoming).
3. Ore from the projects is low in thorium and radioactive penalty elements which are so often associated with other rare earths deposits. This is key from an ESG perspective and also keeps processing/handing costs down.
4. US government support for the industry is a key priority for national security and supply chain purposes. There have been various presidential orders and the US Government is pouring funding into R&D efforts. Furthermore recent Bi-partisan legislation is before the senate to ensure the rare earth supply chain is “on-shored” and within the US. The company is well positioned as a member of the US Critical Materials Institute and has well established relationships with various R&D institutions.
5. We have the US personnel on the ground and established presence with three US based Non- Executive Directors and management team.
6. With Fidelity International investing in the company we are well funded to execute on our work programs and continue to create shareholder value.
What are the top 3 key investor takeaways?
We have seen significant shareholder returns over the past year and we will continue to grow the company to create further shareholder value.
1. We have the US based projects
2. We have the people
3. We are in the right place at the right time.
Its a perfect storm for the company as we continue to deliver on our work plan. We have been building the business in the US and in a unique position to be a major player within the industry.
It’s our vision to create the next major rare earths and critical minerals business and help to restore the supply chain of these critical materials to the United States of America.
As part of our vision we aim to be more than just a mining company but a technology leader in this space: vertically integrated and one day producing the rare earth metals that are critical to our future.
It’s our strategy to not only focus on advancing our rare earths mining projects that have some of the cleanest ore in the world but to continue working collaboratively with R&D leaders to build processing and refining capability. Becoming a member of the Critical Minerals Institute is one small step in the pursuit of our vision and the journey that lies ahead. Being a member of the CMI provides the opportunity to drive R&D, license green and clean technology for deployment, and provide input to CMI research programs.
Under the umbrella of ESG we are adopting a “Book End” strategy to create shareholder value and reduce time to market by focusing on both ends of the supply chain.
To close the supply chain gap the company’s primary focus is developing our major projects through all stages of mine development to produce a rare earth concentrate. At the same time we will work with R&D leaders and partners further down the supply chain to develop processing and refining capability in order to supply a metal product.
The company is well capitalized and 2022 is shaping up to be a transformational year.