- USA Rare Earth will issue about 3.82 million shares to acquire all outstanding shares of Texas Mineral Resources.
- The transaction will give the company full ownership and control of the Round Top Project in Texas.
- USAR expects the Round Top Project to produce around 40,000 metric tons of rare earth and critical minerals per day by 2030.
USA Rare Earth (USAR) announced on Thursday that it is set to acquire Texas Mineral Resources Corp. in an all-stock deal valued at around $73 million, in a bid to boost the country’s critical mineral supply chain.
At the time of writing, USAR shares traded around 3% higher.
Under the deal, USA Rare Earth will issue about 3.82 million shares to acquire all outstanding shares of Texas Mineral Resources. The transaction will give USA Rare Earth full ownership and control of the Round Top Project in Texas, where commercial production is expected to begin in 2028.
The transaction is expected to close no later than the third-quarter of fiscal 2026, the company said.
“We’re consolidating operational control of the Round Top project while ensuring long-term leasehold access for the adjacent land required to transition efficiently from development to commercial production,” said Barbara Humpton, CEO of USAR.
Round Top Could Produce 40,000 MT Per Day By 2030
USA Rare Earth has bet big on the Round Top Project in Texas, which is expected to produce about 40,000 metric tons of rare earth and critical minerals per day by 2030.
In January, USA Rare Earth selected Fluor Corp. and WSP Global as engineering, procurement, and construction management partners to advance the definitive feasibility study and develop key infrastructure for the Round Top Rare Earth Project.
The company said the Round Top project is a key part of its non-China mine-to-magnet supply chain, which will include rare earth oxide processing, metal production, and magnet manufacturing.
How Did Stocktwits Users React?
Despite the intraday gains, retail sentiment on Stocktwits remained ‘bearish.’ However, chatter on the platform was largely positive, with one user calling the stock undervalued.
Another user suggested going long and accumulating on dips.
USAR shares have seen strong buying interest so far this year, gaining more than 50%.
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