US exploration and technology company US Critical Material Corp (USCM) has entered into a nonbinding memorandum of understanding (MoU) with ASX-listed Bayan Mining and Minerals to jointly evaluate rare earth processing technologies on high-grade mineralisation from USCM's Sheep Creek project, in Montana, which contains light and heavy rare earth elements, including gallium, scandium, yttrium, among other strategic minerals.

Bayan holds an exclusive global licence to a suite of rare earth processing technologies developed by the Colorado School of Mines in the US. The parties will evaluate the applicability of these technologies to Sheep Creek’s bastnaesite- and ancylite-hosted rare earths systems.

The collaboration supports the shared objective of accelerating a US-based rare earth processing pathway aligned with national security. Under the terms of the MoU, USCM and Bayan will undertake a structured metallurgical test programme to assess recovery performance, process efficiency and flowsheet optimisation.

Workstreams will be coordinated through a joint technical committee, with USCM maintaining oversight. The results of the test programme will inform potential downstream integration and future development decisions.

“This collaboration allows USCM to evaluate innovative processing technologies on some of the highest-grade rare earth mineralisation in the US. Our focus is to accelerate a US-based processing pathway that strengthens national security, reduces foreign dependence and unlocks the full potential of the Sheep Creek project,” says USCM chairperson Harvey Kaye.

“We look forward to supporting US Critical Materials’ evaluation of our technologies as they assess potential applicability to Sheep Creek’s unique mineral systems. This collaboration provides an opportunity to demonstrate the versatility of our processing platform within a US-focused development framework,” adds Bayan CEO Nathan Kong.

Meanwhile, USCM is also evaluating a potential investment in Bayan that would provide visibility into complementary processing technologies. Any investment remains subject to definitive agreements and regulatory approvals.