Ares talks Lost Sheep fluorspar mine, plant

Executive Summary

• Ares Strategic Mining reports significant infrastructure and construction milestones at its Lost Sheep fluorspar project in Utah, including completed underground ventilation and ore movement systems, and advanced structural work at the processing plant.
• The company announced a non-dilutive cash infusion of approximately $3.66 million from Sorbie Bornholm, representing a gain of over $2.66 million on Sorbie's initial $1 million investment, which will accelerate construction of the second processing facility (Acidspar flotation plant).
• Ares announced a non-brokered private placement of up to 22,222,222 units at $0.45 per unit for gross proceeds of up to $10 million, with net proceeds intended for general corporate working capital and debt repayment.

Key Details

• Underground Infrastructure:
  • Secondary ventilation door sealed to enhance airflow and MSHA compliance.
  • Raise 1 prepared for mining with installed tugger and slusher system for ore movement.
  • New drill stations developed in declines for upcoming headings.
  • Waste pad upgraded for efficient ore and waste segregation.
• Processing Plant Construction:
  • Over six cubic yards of concrete poured for key support columns.
  • Walkway decking installed on 70% of Level 2 mainframe; scaffolding erected on Level 3.
  • Grade screen and crusher frame securely fitted.
  • Power feed conveyor belt fully installed; backfilling completed around concrete slab.
  • Welding and fabrication ongoing for concentrator tank and product warehouse hoppers.
• Financing from Sorbie Bornholm:
  • Received approximately $3.66 million through sharing agreements.
  • Represents 180%+ and 266%+ undiluted returns.
  • Gain of over $2.66 million on Sorbie's initial $1 million investment.
  • Funds designated to accelerate construction of the Acidspar flotation plant.
• Private Placement Details:
  • Offering up to 22,222,222 units at $0.45 per unit.
  • Gross proceeds of up to $10 million.
  • Each unit consists of one common share and one-half of one non-transferable common share purchase warrant.
  • Warrants exercisable into one common share at $0.55 per warrant share for two years.
  • Net proceeds to be used for general and corporate working capital and repayment of outstanding debts.
  • Offering to close in one or more tranches, with final tranche closing within 45 days.
  • Offered under listed issuer financing exemption (NI 45-106) in Canada (excluding Quebec) and other qualifying jurisdictions.

Notable Quotes

• "This wave of construction and underground progress marks a major turning point for Ares. We now have the physical and regulatory infrastructure in place to begin industrial-scale mining. Every pad, bolt, weld and fan gets us closer to delivering fluorspar to a market that desperately needs it." — James Walker, CEO
• "This is an incredible vote of confidence in our project from Sorbie Bornholm. The structure of the agreement delivered substantial capital without diluting shareholders, enabling us to fast-track our second plant and scale our fluorspar production capabilities." — James Walker, CEO