Ares Accelerates Flotation Plant Construction Following U.S. Defense Contract Award and New $10M Private Placement

Executive Summary

• Ares Strategic Mining announced a non‑brokered private placement of up to CAD 10 million to fund acceleration of its acidspar flotation plant in Utah, targeting first deliveries later 2026 under a U.S. DoD IDIQ contract.
• The company holds an estimated $168.9 million award from the Department of Defense and is positioning itself as the sole domestic supplier of critical‑mineral acidspar.
• Proceeds will be used to advance the Lost Sheet fluorspar project, repay certain debts, and provide general corporate working capital.

Key Details

• Private Placement Structure: Up to 16,666,666 units at $0.60 per unit for gross proceeds of up to CAD 10 million.
• Unit Composition: Each unit = 1 common share + ½ non‑transferable warrant; each warrant exercisable into one common share at $0.75 for two years post‑closing.
• Use of Proceeds:
• Accelerate construction of the acidspar flotation plant (foundation, mechanical installations, first processing runs).
• Further develop the Lost Sheet fluorspar project in Utah.
• Repay certain outstanding debts.
• General and corporate working capital.
• DoD Contract Context: Estimated award of $168.9 million under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a $250 million ceiling, making Ares the primary domestic supplier of acidspar for defense, hydrofluoric acid, semiconductor and EV battery supply chains.
• Project Milestones:
• Complete plant foundation & mechanical installations.
• Commence first processing runs.
• Execute initial deliveries under DoD contract later in 2026.
• Advance uplisting to a senior exchange.
• Closing Timeline: Offering expected to close in one or more tranches; final tranche anticipated within 45 days of the announcement, subject to regulatory approvals and CSE filing obligations.
• Previous Offering Note: The earlier proposed offering (up to 22,222,222 units at $0.45) announced Dec 4 2025 did not close within its deadline.

Notable Quotes

“This is a defining moment for Ares… With strong government support, market demand, and financing in place, we’re pushing forward to ensure on‑time delivery under our DoD contract and to support our uplist plans for later this year.” – James Walker, CEO & President

“We’re aligned with national priorities and uniquely positioned to deliver. Investors, partners, and government agencies are recognizing that Ares isn’t just building a mine – we’re rebuilding a critical American supply chain.” – James Walker