USA Rare Earth exercises option to acquire stake in Round Top Project
Published by Will Owen,
Global Mining Review,
Texas Mineral Resources Corp. (TMRC) has announced that, pursuant to the terms of the 2019 Amended and Restated Option Agreement approved by TMRC shareholders, USA Rare Earth has fully funded its US$10 million commitment to earn its 70% interest in the Round Top heavy rare earth, lithium, and critical minerals project in Hudspeth County, Texas, and has exercised its option to acquire an additional 10% of the Round Top Project.
As a result of the performance by USA Rare Earth pursuant to the 2019 amended and restated option agreement, TMRC formed Round Top Mountain Development LLC to hold the joint venture interests of TMRC and USA Rare Earth. TMRC will own a 20% interest in Round Top Mountain Development LLC. All other corporate activities, such as TMRC’s REE’s from coal initiatives, as well as its New Mexico silver exploration project, are not part of the USA Rare Earth JV and remain 100% with TMRC.
USA Rare Earth recently completed a Series C funding round of US$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 t bulk sample to support the feasibility studies and the Demonstration Plant. USA Rare Earth will continue to explore additional financing as required with its advisors, Goldman Sachs and Bank of Montreal.
“USA Rare Earth continues to be an outstanding project partner and we are pleased to finalise our joint venture through the creation of the Round Top Mountain Development LLC,” commented Anthony Marchese, TMRC Chairman. “I have been impressed by their unwavering vision of helping the US create a domestically based critical mineral supply chain. Their recently completed funding and the expertise of their financial advisors solidifies our belief that our joint venture will have the necessary resources to succeed.”
Read the article online at: https://www.globalminingreview.com/finance-business/24052021/usa-rare-earth-exercises-option-to-acquire-stake-in-round-top-project/
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