REalloys gets US Army site nod, raises $100M

REalloys (Nasdaq: ALOY) is raising $100 million through a securities purchase agreement with institutional investors and the U.S. Army selected it among companies to build processing plants on military bases. 

The Euclid, Ohio-based company joins Titan Mining (TSX: TI) to negotiate long-term leases on military sites, advancing Washington’s efforts to secure domestic supply chains for materials used in defence systems and advanced manufacturing. The $100 million share offering, expected to close on Friday, would provide working capital moving forward, REalloys said this week.

Shares in REalloys gained 6% on Friday in New York to $15.10 apiece, valuing the company at $924 million. They fell 15% on Wednesday after the fundraising announcement and they’ve traded in a range from $7.43 to $26.90 over the past 52 weeks. 

REalloys was selected to negotiate an enhanced-use lease at the Tooele Army Depot in Utah, where it plans to build processing facilities for heavy rare earth elements including dysprosium and terbium, metals used in high-temperature permanent magnets for defence and industrial applications.

Titan 

Titan, which produces graphite in New York state, said its Empire State Mines subsidiary received conditional selection notices for enhanced-use leases at two Army sites to develop graphite processing capacity. The proposed projects would be located on a 245-acre (99-hectare) parcel at Pine Bluff Arsenal in Arkansas, the primary site, and a 97-acre parcel at Anniston Army Depot in Alabama.

The proposed leases could run for as long as 50 years. Under the arrangement, the companies would finance, design, build, operate and ultimately decommission the facilities, while the U.S. Army would retain ownership of the land. REalloys said development could begin as early as 2027, while Titan is targeting construction in the second half of that year. Titan added that it would continue pursuing additional Army sites as it expands its U.S. natural flake graphite supply chain.

REalloys has the Hoidas Lake rare earth asset in Saskatchewan and a diversified network of allied feedstock and recycling partners. Together with the Saskatchewan Research Council, it is funding and contracting the scale-up of heavy rare earth midstream separation, refining and metallization capabilities, securing exclusive access to the commercial output to supply its downstream manufacturing operations in Ohio.

In support of those plans, REalloys signed a 15-year offtake agreement last month for rare earth concentrates to be produced at Critical Metals’ (Nasdaq: CRML) Tanbreez project in Greenland, hailed as one of the largest and most significant heavy rare earth deposits globally.