Moving Toward Production at the Lost Sheep Mine | RCTV In Conversation with Ares Strategic Mining
Why It Matters
Ares’ near‑term production and DoD contract secure a domestic source of a critical mineral, bolstering U.S. industrial and defense supply chains while offering investors exposure to a de‑risked rare‑earth play.
Key Takeaways
- •Lost Sheep Mine is only U.S. permitted fluorite spar mine
- •Ares is stockpiling ore and nearing full‑scale production by late 2026
- •Secured a $250 million five‑year DoD contract, boosting credibility
- •$10 million oversubscribed financing will fund a second flotation plant
- •Plans to uplist to NASDAQ to broaden U.S. investor access
Summary
Ares Strategic Mining announced that its Lost Sheep Mine in Utah, the sole permitted fluorite spar operation in the United States, is transitioning from a junior mining project to a commercial producer. The company has completed most of the mine’s infrastructure, begun ore extraction, and is stockpiling tens of thousands of tons while fine‑tuning its on‑site processing plant for full‑scale output, targeting commercial shipments within months and full production by the end of 2026. The fluorite spar mineral is a critical input for steel, aluminum, hydrofluoric acid, refrigeration, nuclear fuel enrichment and even micro‑chip manufacturing, with domestic demand running into millions of tons annually. Ares has de‑risked the project through extensive metallurgical work, rail‑spur development, and pond construction, positioning itself to meet demand that exceeds its projected capacity, especially from the steel sector where 20 lb of spar is required per ton of steel. Key milestones include a five‑year, up‑to‑$250 million contract with the U.S. Department of Defense’s Logistics Agency—awarded as a sole‑source due to Ares’ unique supply capability—and a $10 million financing round that was three times oversubscribed, earmarked for a second flotation plant to produce higher‑grade acid spar. The company also highlighted that the price of fluorspar has risen as China shifts from exporter to importer, further strengthening the business case. The developments signal a broader push for U.S. industrial sovereignty, reducing reliance on foreign sources for a mineral that cannot be recycled. Ares’ planned NASDAQ uplist aims to unlock a larger pool of institutional capital, potentially accelerating expansion into other North American deposits and solidifying its role in the domestic critical minerals supply chain.
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