Mr. James Walker reports
ARES STRATEGIC MINING CLOSES AND DEPOSITS $10.5M USD ($14M CAD) FINANCING AND COMMENCES EXPANDED MANUFACTURING PROJECT
Ares Strategic Mining Inc.
has closed a State of Utah backed financing of over $14-million for the purposes of purchasing, constructing and commissioning a new, advanced (and the only one of its kind in the country) acidspar manufacturing facility.
The Company is seeking to rebuild the U.S. fluorspar industry, which has elicited enormous help from the government, which referred the Company to both the USDA loan closed earlier this year, and the State of Utah's
Private Activity Bond (PAB) Program. This program is Utah's tax-exempt bonding authority creating a lower cost, long-term source of capital under the Federal Tax Act of 1986. The Company was referred to the Program by the State of Utah through its business development channels, to help
support and realize the Company's project.
The Company intends to use the proceeds for to build its second and larger plant - a flotation facility designed to produce acidspar. Acidspar is the highest-grade fluorspar product produced for industry and is one of the most ubiquitously used industrial minerals in manufacturing, with applications in the chemical, hydrofluoric acid, aluminum, electronics, li-ion battery, and refrigeration industries. This high-end industrial product requires a fluorspar purity of 97%+, which the new plant will provide. Acidspar sells for a premium in the fluorspar market due to the vast number of industrial applications. The product composes over two-thirds of the United States' fluorspar market and is currently 100% imported from countries outside the United States.
Ares Acidspar Production Facility
In 2018 the U.S. government classified fluorspar as a Critical Mineral, "deemed critical to U.S. national security and the economy". Fluorspar remains the only non-metallic Critical Mineral which is 100% imported in the entire country. Fluorspar's classification as a Critical Mineral in the United States translates to a faster permitting period, enabling mining operations to initiate more quickly than operations for conventional minerals.
James Walker, President and CEO of the Company said, "This is a major step for our Company and business. The financing will enable the completion of a large processing facility and give the Company the financial reach to accelerate construction, move forward our acidspar production plans, and install a modern, well-designed industrial infrastructure at our Utah manufacturing site. This financing ensures a very active and productive 2024 for our Company, we have the resources to build a much-expanded operation able to cater to a far larger market."
We seek Safe Harbor.
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