American Rare Earths receives non-binding proposal

American Rare Earths Limited (ASX: $ARR) has received an indicative, conditional, and non-binding proposal from a NASDAQ-listed Special Purpose Acquisition Company (SPAC) to acquire its 100% owned subsidiary Wyoming Rare (USA) Inc, which holds the Company's 2.34 billion tonne Halleck Creek Rare Earth Project.

Chairman's perspective on the proposal

The inbound interest received in American Rare Earths underscores the immense value and strategic significance of our Halleck Creek Rare Earth Project. As we navigate potential pathways for growth, including the recent proposal from a NASDAQ-listed SPAC, we remain committed to maximizing returns for our shareholders while advancing our mission of sustainable resource development.

Outlook and strategic evaluation

American Rare Earths (ASX: $ARR) has declined to advance the non-binding proposal at this time, citing the need to maximize returns to shareholders and minimize dilution. The Board will continue to evaluate all strategic alternatives to ensure optimal returns to its shareholders, particularly after reaching certain near-term operational milestones that will provide investors further confidence in the significant value presented by Halleck Creek. The Company aims to develop environmentally friendly and cost-effective extraction and processing methods to meet the increasing demand for resources essential to the clean energy transition and US national security. American Rare Earths is also collaborating with US Government-supported R&D to develop efficient processing and separation techniques of rare earth elements to help ensure a renewable future.