Mentioned:
USA Rare Earth is positioning for the future of the rare earth supply chain. Which is exactly why they’ve just closed a major acquisition in Brazil.
What’s happening:
- USA Rare Earth (NASDAQ: USAR) has successfully completed their acquisition of Brazil based rare earth mining company Serra Verde Group
By the numbers:
- USA Rare Earth paid $300M USD In cash and issued roughly 126M common shares to purchase Serra Verde Group
Why it matters:
- Serra Verde Group operates one of the only mines located outside of Asia that is currently producing both light and heavy rare earth elements including neodymium, praseodymium, dysprosium and terbium
Going deeper:
- Serra Verde Group raised more than $1B USD in both private equity funding and debt financing to bring their Pela Ema rare earth project into production
- A United States government backed special purpose vehicle anchored by the Department of War has notably committed to purchasing 100% of Phase I production under a 15 year supply deal with price floors from USA Rare Earth
The intrigue:
- The United States federal government previously made major waves when they committed $1.6B USD in funding to USA Rare Earth one exchange for common shares and warrants
