USA Rare Earth buys full stake in Texas deposit for $73M

USA Rare Earth Inc has announced it will acquire the remaining minority interest in a significant rare earth deposit located in Texas. The all-stock transaction is valued at approximately $73 million and represents a major step in the company's efforts to enhance domestic production of critical minerals within the United States. Under the terms of the agreement, the company will purchase all outstanding shares of Texas Mineral Resources Corp. in exchange for roughly 3.8 million shares of common stock. Following the announcement, shares of the acquiring firm saw a 1% increase in premarket trading. The acquisition grants the company full control over the Round Top project, which is recognized as the largest known domestic source of heavy rare earth elements, as well as gallium and beryllium. The firm recently accelerated its timeline for the project, moving the start of commercial production forward to late 2028 from the original 2030 target. This adjustment was attributed to rapid progress at processing facilities and a sharp rise in domestic demand for these essential materials. Earlier this year, the company revealed that the administration of President Donald Trump would support a $1.6 billion debt-and-equity funding package. These funds are intended to facilitate the construction of the Texas mine and a specialized magnet facility designed to serve the defense and high-technology sectors. The move aligns with broader federal efforts to utilize emergency powers to stimulate domestic mineral production and reduce reliance on China, which currently maintains a dominant position in the global sector. > This acquisition secures a vital pillar in our strategy to build the worlds leading globally integrated, non-China critical mineral technology platform. USA Rare Earth CEO Barbara Humpton emphasized the strategic importance of the deal for the company's long-term vision. According to the current Accelerated Mining Plan, the facility is expected to process nearly 40,000 metric tons of feedstock per day by 2030. The transaction has received approval from the boards of directors at both firms and is slated for completion by the third quarter of the year.