REalloys (Nasdaq: ALOY) is raising $100 million through a securities purchase agreement with institutional investors in support of its proposed buildout of a vertically integrated rare earth magnet supply chain.
The Euclid, Ohio-based company is developing a complete mine-to-magnet value chain designed to restore domestic industrial independence and provide defense-grade materials to US agencies. This encompasses a full circular supply chain encompassing upstream resource development, midstream processing and downstream manufacturing.
The upstream foundation is anchored by its 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 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.
The $100 million share offering, expected to close on June 26, would provide working capital moving forward, the company said in a press release this week, without providing further details.
The financing comes a day before reports that the US government is prepared to allow several companies — including REalloys — to begin building critical minerals processing plants at military bases across the country.
According to sources cited by Bloomberg ahead of a potential announcement, REalloys could be permitted to construct a rare earth separation facility at the Toole Army Depot in Utah.
Shares of REalloys plummeted by 14.5% at market close on Thursday following the potential dilution to shareholders and continued weakness across US equities. The company trades at a market capitalization of $872.3 million.
