American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF) has received its first reimbursement of US$304,000 (approximately A$450,000) from a larger US$7.1 million grant awarded by the Wyoming Energy Authority (WEA), Proactive Investors repotrs.
The grant is designated for the exploration and development of the company’s flagship Cowboy State Mine (CSM) at the Halleck Creek Rare Earths Project in Wyoming, USA.
The reimbursement marks an important step forward for American Rare Earths as it continues to advance its operations at the Halleck Creek project. The funds will be used for key activities, including exploration drilling, environmental baseline studies, and pre-feasibility assessments, which are critical to de-risking the project and moving it toward full development.
This non-dilutive grant funding provides American Rare Earths with the necessary financial resources to continue developing the Cowboy State Mine without diluting shareholder value.
Chris Gibbs, CEO of American Rare Earths, emphasized the importance of this reimbursement, calling it “a crucial step” in achieving the company’s 2025 goals. He added that the funding would significantly aid efforts to advance the project and mitigate risks associated with exploration and development.
The approval of the full grant in June 2024 and this subsequent reimbursement highlights the company’s commitment to contributing to Wyoming’s energy strategy and the broader US clean energy transition.
The grant will continue to support ongoing initiatives at the Cowboy State Mine, with a particular focus on progressing toward a pre-feasibility study (PFS). This phase of the project is essential in determining the overall feasibility and potential profitability of the rare earth mining operation.
American Rare Earths’ efforts at Halleck Creek are part of a broader strategy to support US energy independence and clean energy initiatives, positioning the project as a key contributor to the rare earths supply chain in the United States.
