Ares Strategic speeds up flotation plant construction

Executive Summary

• Ares Strategic Mining is accelerating construction of its acidspar flotation plant in Utah following a $168.9M estimated U.S. DoD IDIQ contract award and a newly launched $10M private placement.
• The company aims to begin first deliveries of acid-grade fluorspar later this year, positioning itself as the sole domestic U.S. supplier of this critical mineral.
• The $10M private placement will fund further development of the Lost Sheep project, debt repayment, and working capital, while the company advances plans to uplist to a senior exchange.

Key Details

• DoD Contract Award: $168.9M estimated award under the Defense Logistics Agency (DLA) indefinite delivery/indefinite quantity (IDIQ) contract, with a total contract ceiling of $250M.
• Plant Construction Acceleration: Expedited timeline for the acidspar flotation plant; key milestones include completing the foundation and mechanical installations, beginning first processing runs, and executing initial deliveries under the DoD contract.
• Private Placement Structure: Non-brokered offering of up to 16,666,666 units at $0.60 per unit, generating gross proceeds of up to $10M.
• Warrant Terms: Each unit includes one common share and one-half of one non-transferable common share purchase warrant. Warrants are exercisable at $0.75 per share for a period of two years following closing.
• Use of Proceeds: Further development of the Lost Sheep fluorspar project in Utah, repayment of certain outstanding debts, and general/corporate working capital.
• Previous Offering Status: The proposed offering of 22,222,222 units at $0.45/unit (announced Dec. 4, 2025) did not close within the NI 45-106 deadline.
• Strategic & Market Context: Aims to break U.S. 100% import dependency on fluorspar, supplying defense systems/national stockpiles, hydrofluoric acid/fluorochemical industries, semiconductors, and EV battery supply chains.
• Corporate Actions: Plans to advance the uplisting process to a senior exchange later this year.
• Regulatory/Jurisdiction: Offered under the listed issuer financing exemption in Canada (excluding Quebec); units not subject to resale restrictions for Canadian resident investors.

Notable Quotes

• "This is a defining moment for Ares. Our flotation plant is now a top-priority build. 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
• "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, CEO