USA Rare Earth exercises option to acquire 80% of unique Round Top project
(Kitco News) - USA Rare Earth and Texas Mineral Resources (OTCQB: TMRC) announce Thursday that USA Rare Earth has exercised its option to acquire 80% of the Round Top heavy rare earth, lithium and critical minerals project in Hudspeth County, Texas.
According to the statement, USA Rare Earth recently completed a Series C Funding round of $50 million and is now funded through the completion of the Definitive Feasibility Study (DFS), which includes the Pre-Feasibility Study (PFS), the Pilot Plant and a Demonstration Plant to be built at the Round Top site later this year which will include test heap leach pads and continuous ion exchange (CIX) processing.
The Demonstration Plant will support the DFS and permitting as well as producing representative materials for evaluation by prospective customers. The Round Top joint venture has received construction stormwater permits from the Texas Commission on Environmental Quality (TCEQ) and has commenced a 20,000 tonne bulk sample to support the feasibility studies and the Demonstration Plant.
USA Rare Earth added that the company’s wholly-owned subsidiary, USA Rare Earth Magnets, is also fully funded to recommission the sintered rare earth permanent magnet manufacturing system that it acquired last year, which was formerly owned and operated by Hitachi Metals America in North Carolina.
USA Rare Earth owns an 80% operating joint venture interest in the Round Top heavy rare earth and critical minerals project located in Hudspeth County, West Texas. Round Top hosts a wide range of critical heavy rare earth elements, high-tech metals, including lithium, gallium, zirconium, hafnium and beryllium.
Based on the Preliminary Economic Assessment (dated August 16, 2019) projects a pre-tax net present value using a 10% discount rate of $1.56 billion based on a 20-year mine plan that is only 13% of the identified measured, indicated and inferred resources.