Name of the Project
Halleck Creek rare earths project.

Location
Central Laramie Mountains, Wyoming, US.

Project Owner/s
Wyoming Rare (USA) Inc (WRI), a subsidiary of American Rare Earths (AAR).
 
Project Description
A scoping study has shown the 2.34-billion-tonne Halleck Creek to be a world-class rare earth element project.

The project comprises the Cowboy State mine in American Rare Earths’ southern land holdings and the Overton mountain resource area in the north.

The scoping study proposes a 20-year operation with a processing rate of about three-million tonnes a year for total production of 64.26-million tonnes.

In Phase 1 production is estimated at 1.53-billion tonnes a year of neodymium/praseodymium, 17-million tonnes a year of terbium oxide, 91-million tonnes a year of dysprosium oxide, 383-million tonnes a year of samarium, europium and gadolinium concentrate, and 1.49-billion tonnes of lanthanum carbonate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Under the three-million-tonne-a-year base case scenario, the scoping study outlines a pretax net present value, at an 8% discount rate, of $637.9-million and an internal rate of return of 22.5%, with a payback of 2.9 years.

Capital Expenditure
Total initial capital expenditure is estimated at $456.1-million.

Planned Start/End Date
Construction is expected to take 2.5 years to complete.

Latest Developments
AAR has announced operational and structural changes aimed at advancing the project.

Following a strategic review, the board has repositioned the project under WRI – a newly created, wholly owned subsidiary – to attract major US investors and enhance shareholder value.

The dedicated capital structure and funding sources for WRI are expected to make the Halleck Creek project, which includes the Cowboy State mine, a more attractive investment opportunity.

This move comes on the heels of a recent energy fund grant from the state of Wyoming and a clear pathway to permitting, positioning WRI to expedite the development of one of North America's largest rare-earth deposits.

WRI will be led by an experienced leadership team, with Sten Gustafson as chairperson. He is the CEO and a director of NYSE-listed Pyrophyte Acquisition.

Joe Evers, ARR’s current general counsel, will serve as president of WRI. Evers played a key role in securing a $7.1-million grant from the State of Wyoming and has extensive experience in the energy and mining industries.

John Mansanti will take on the role of senior adviser, supporting the development of the Cowboy State mine. Mansanti, with more than 45 years of industry experience, will resign from the ARR board to fully dedicate his efforts to WRI.

ARR will continue its exploration activities in Australia and the US, focusing on critical minerals.

Donald Swartz will explore new opportunities while continuing to provide advisory services during the leadership transition. Chris Gibbs, currently a nonexecutive director on the ARR board, will be appointed as CEO of ARR.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
American Rare Earths, tel +61 2 8054 9779 or email info@americanree.com.