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American Rare Earths (ASX:ARR) were up a modest +2.10% in the first hour of Monday trades as the company pushes its flagship Wyoming-based project under a subsidiary domiciled there.
This the company expects to smooth out the track when it comes to running at US state-backed grants and other funding options. It also stated that its flagship Halleck Creek Project is critical for the USA when it comes to that country’s desire to establish domestic downstream capacity.
“The changes we have determined will allow the full value of Halleck Creek to be realised as a strategic project for North America, while ensuring ARR continues its highly successful exploration activities in pursuit of our vision to be a leading player in the critical minerals sector,” ARR chair Richard Hudson said.
“By creating a dedicated subsidiary for the Halleck Creek Project, we are positioning the Company to unlock significant value and accelerate the development of a critical resource for the US.
“These changes will not only streamline our operations but enable us to better increase shareholder value long term.”
Notably, current ARR CEO Donald Swartz has decided to move on for other pastures; the company’s lawyer will be appointed as CEO once handover is complete.
Swartz’s Linkedin still displays Swartz as the ARR CEO and his cover photo is still the company’s logo.
The new subsidiary will focus particularly on the Cowboy State Mine, which is part of the overall Halleck permitage. The Wyoming state government recently awarded the company an energy fund grant; a scoping study predicts the project value to hit US$674M.
Elsewhere, nanocap Pearl Gull today decided not to acquire a Chilean REE play, citing low commodity prices for such baskets of minerals.
ARR last traded at 24cps.
