Ares says production plan tied to Pentagon contract

Executive Summary

• Ares Strategic Mining is accelerating its production roadmap and construction of a flotation plant to fulfill a $250 million U.S. Department of Defense contract for acidspar, targeting first deliveries by December 30, 2025.
• The company closed a $10 million equity offering, issuing 16,666,666 units at $0.60 per unit, to fund the accelerated plan and maximize contract ceiling realization.
• Detailed disclosures reveal that proceeds from three Sorbie Bornholm LP financing facilities have exceeded benchmark amounts by $269,758.66, alongside the issuance of 700,000 options to consultants.

Key Details

• DoD Contract Terms: Ceiling of $250 million USD; delivery window from December 30, 2025, to December 29, 2030; acidspar must be delivered within 36 months of each delivery order; first order awarded December 30, 2025.
• Production & Operations Acceleration: Expanding mining activities at Spor Mountain; fast-tracking construction of the flotation plant; imminent drilling to expand mining targets and increase mine count; targeting highest-grade fluorspar production in 2026; lumps plant near completion; company now focused on phase 3 of its production plan.
• Equity Offering Closure: Issued 16,666,666 units at $0.60 per unit; aggregate gross proceeds of $10,000,000.
• Sorbie Bornholm LP Financing Facility 1 (September 2024, $1.5M limit): Aggregate benchmark paid to date: $1,000,000; Aggregate gross proceeds received (Oct 2024–Jan 2026): $1,119,564.38; Variance: +$119,564.38; Upfront fees: $105,000.
• Sorbie Bornholm LP Financing Facility 2 (April 2025, $1.0M limit): Aggregate benchmark paid to date: $375,003.00; Aggregate gross proceeds received (May 2025–Jan 2026): $727,313.86; Variance: +$352,310.86; Upfront fees: $70,000.
• Sorbie Bornholm LP Financing Facility 3 (October 2025, $1.0M limit): Aggregate benchmark paid to date: $125,001.00; Aggregate gross proceeds received (Nov 2025–Jan 2026): $97,884.42; Variance: -$27,116.58; Upfront fees: $0.
• Total Financing Variance: Total proceeds received to date exceed aggregate benchmark amounts by $269,758.66.
• Option Grants: Issued 700,000 options to consultants on January 23, 2026; exercise price of $0.63 per common share; expiration date January 23, 2028.

Notable Quotes

• "The DoD contract has transformed our company road map, and the race is on to deliver as much quality fluorspar as we can. To do that, we need more funding. The latest funding will help us to reach our first DoD deliveries, and crucially, to reach the ceiling of the award in the time frame specified," — James Walker, CEO
• "With the lumps plant very close to completion, we are now focused on phase 3 of our plan," — James Walker, CEO
• "We're proud to champion this funding publicly, it's yet another clear vote of confidence in our mission and enables us to revise our road map and production plans," — James Walker, CEO