USA Rare Earth said on Thursday it will purchase the remaining minority stake in the Round Top rare earth deposit in Texas in an all-stock deal valued at $73 million. Under the terms, the company will acquire all outstanding shares of Texas Mineral Resources in exchange for roughly 3.8 million shares of USA Rare Earth common stock.
The transaction will leave USA Rare Earth as the sole operator of the Round Top project, which the company describes as the largest known U.S. source of heavy rare earth elements as well as significant deposits of gallium and beryllium. Shares of USA Rare Earth rose about 1% in premarket trading after the announcement.
USA Rare Earth has previously moved to accelerate the timeline for commercial production at the Texas project. Last year the company said it would bring forward commercial production to late 2028 from an earlier target of 2030, citing faster-than-expected progress at its processing facilities and growing U.S. demand for critical minerals.
Earlier this year the company said the Trump administration would back a $1.6 billion debt-and-equity funding package intended to support construction of the Texas mine and an associated magnet manufacturing facility designed to supply defense and high-technology users. The company tied that support to broader efforts to expand domestic production of critical minerals.
Commenting on the acquisition, USA Rare Earth CEO Barbara Humpton said, "This acquisition secures a vital pillar in our strategy to build the world’s leading globally integrated, non-China critical mineral technology platform." The company said the deal has been approved by the boards of both firms and is expected to close by the third quarter.
Under its Accelerated Mining Plan, USA Rare Earth projects it will extract nearly 40,000 metric tons per day of rare earth and critical mineral feedstock by 2030. The announcement consolidates operational control ahead of that ramp-up, though the company’s timetable and financing plans remain central to execution.
Deal details
- Consideration: approximately 3.8 million shares of USA Rare Earth common stock, implied value $73 million.
- Target: all outstanding shares of Texas Mineral Resources, making USA Rare Earth sole operator of Round Top.
- Approvals: transaction approved by both boards; expected close by the third quarter.
Production and financing
- Production timeline: commercial production moved forward to late 2028 from 2030.
- Output projection: nearly 40,000 metric tons per day of feedstock targeted by 2030 under the Accelerated Mining Plan.
- Financing: company previously said a $1.6 billion debt-and-equity package would be backed by the administration to support mine and magnet facility construction.