Ares Strategic Mining wins Pentagon fluorspar deal

Executive Summary

• Ares Strategic Mining Inc. has been awarded a $168,938,267.30 contract by the U.S. Department of Defense (via the Defense Logistics Agency) to supply acid-grade fluorspar.
• The agreement is structured as a five-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a total ceiling of up to $250 million through future task orders.
• The award establishes Ares as the sole-source domestic supplier of acid-grade fluorspar, directly supporting U.S. defense readiness, critical mineral stockpile replenishment, and domestic supply chain independence.

Key Details

• Initial Contract Value: $168,938,267.30 (~$169M)
• Potential Total Value: Up to $250 million over a five-year period via future task orders
• Contract Structure: Five-year Indefinite Delivery/Indefinite Quantity (IDIQ) agreement
• Customer/Counterparty: U.S. Department of Defense (DoD) through the Defense Logistics Agency (DLA)
• Product Supplied: Acid-grade fluorspar (acidspar)
• Strategic Mission: Replenishment of U.S. government stockpiles of strategic and critical minerals; supports defense systems, steel/aluminum production, fluorochemical manufacturing, semiconductors, batteries, and next-generation electronics
• Supply Chain Impact: Positions Ares as the only U.S.-based operation positioned to deliver this critical mineral at scale, addressing the U.S. historical 100% import dependency for fluorspar
• Project Context: Tied to the fully permitted, 100%-owned Lost Sheep Fluorspar project in Delta, Utah (5,982 acres, 353 claims, located in the Spor Mountain area of Juab County, ~214 km southwest of Salt Lake City)
• Regulatory/Operational Status: Fully permitted with mining permits approved by the Bureau of Land Management (BLM); NI 43-101 technical report confirms extensive high-grade fluorspar with low impurities; mining plan originally approved Aug. 24, 1992 and renewed Dec. 12, 2016

Notable Quotes

• James Walker, CEO: "This is the kind of contract that transforms companies, and secures the future of U.S. industry. We're not just producing fluorspar; we're helping build a more resilient and secure domestic supply chain for critical minerals."
• James Walker, CEO: "This award reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain. We are proud to support the U.S. government's strategic material reserves by supplying domestically sourced, high-grade acidspar. This contract confirms our leadership in rebuilding U.S. critical mineral capability and ensures our products directly contribute to national resilience, industrial strength and long-term security. We are now a partner in America's strategic future."