ASX-listed American Rare Earths (AAR) has announced operational and structural changes aimed at advancing the Halleck Creek project, in Wyoming. Following a strategic review, the board has repositioned the project under a newly created, wholly owned subsidiary, Wyoming Rare (USA) Inc (WRI), to attract major US investors and enhance shareholder value.

The dedicated capital structure and funding sources for WRI are expected to make the Halleck Creek project, which includes the Cowboy State mine, a more attractive investment opportunity.

This move comes on the heels of a recent energy fund grant from the state of Wyoming and a clear pathway to permitting, positioning WRI to expedite the development of one of North America's largest rare earth deposits.

“The new focus represents a pivotal moment for ARR,” said chairperson Richard Hudson.

“By creating a dedicated subsidiary for the Halleck Creek project, we are positioning the company to unlock significant value and accelerate the development of a critical resource for the US. These changes will streamline our operations and enable us to better increase shareholder value long term.”

WRI will be led by an experienced leadership team, with Sten Gustafson as chairperson. He is the CEO and a director of NYSE-listed Pyrophyte Acquisition.

Joe Evers, ARR’s current general counsel, will serve as president of WRI. Evers played a key role in securing a $7.1-million grant from the State of Wyoming and has extensive experience in the energy and mining industries, says AAR.

John Mansanti will take on the role of senior adviser, supporting the development of the Cowboy State mine. Mansanti, with over 45 years of industry experience, will resign from the ARR board to fully dedicate his efforts to WRI.

ARR will continue its exploration activities in Australia and the US, focusing on critical minerals.

The company also announced that Donald Swartz will explore new opportunities while continuing to provide advisory services during the leadership transition. Chris Gibbs, currently a non-executive director on the ARR board, will be appointed as CEO of ARR.

The scoping study of March 2024 highlighted the commercial viability of the Halleck Creek project, with a net present value of $673.9-million, an internal rate of return of 22.5%, and a payback period of 2.9 years, requiring an initial capital expenditure of $456.1-million. With less than 75% of the mineralised zones yet to be drilled and the deposit remaining open at depth, the project has significant upside potential.

"The Halleck Creek project is key to the state of Wyoming, and we are committed to delivering value for our shareholders through dedicated development and strategic partnerships," said Hudson.

"The changes we have determined will allow the full value of Halleck Creek to be realised as a strategic project for North America, while ensuring ARR continues its successful exploration activities in pursuit of our vision to be a leading player in the critical minerals sector."