ARSMF - Ares Strategic Mining Closes and Deposits $10.5M USD ($14M CAD) Financing and Commences Expanded Manufacturing Project
(TheNewswire)
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Non-dilutive financing to protect theCompany Share Structure.
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Largest Financing ever completed bythe Company.
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Funds will build a new plant able toproduce the highest quality fluorspar products.
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New plant will be located with thelumps plant currently under construction.
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Opens up a much larger market to theCompany.
Vancouver, B.C. - TheNewswire - December 22 nd , 2023 — Ares Strategic Mining Inc. (“ARES” or the “Company”) (CSE:ARS) (OTC:ARSMF)(FRA:N8I1), is pleased to announce closing a State of Utah backedfinancing of over $14,000,000 CAD, for the purposes of purchasing,constructing, and commissioning a new, advanced, and the only one ofits kind in the country, acidspar manufacturing facility.
The Company is seeking to rebuild the U.S. fluorsparindustry, which has elicited enormous help from the government, whichreferred the Company to both the USDA loan closed earlier this year,and the State of Utah’s Private Activity Bond(PAB) Program. This program is Utah’s tax-exempt bonding authoritycreating a lower cost, long-term source of capital under the FederalTax Act of 1986. The Company was referred to the Program by the Stateof Utah through its business development channels, to help support and realize the Company’s project.
The Company intends to use the proceeds for to buildits second and larger plant – a flotation facility designed toproduce acidspar. Acidspar is the highest-grade fluorspar productproduced for industry and is one of the most ubiquitously usedindustrial minerals in manufacturing, with applications in thechemical, hydrofluoric acid, aluminum, electronics, li-ion battery,and refrigeration industries. This high-end industrial productrequires a fluorspar purity of 97%+, which the new plant will provide.Acidspar sells for a premium in the fluorspar market due to the vastnumber of industrial applications. The product composes overtwo-thirds of the United States’ fluorspar market and is currently100% imported from countries outside the United States.
Ares Acidspar ProductionFacility
In 2018 the U.S. government classified fluorspar as aCritical Mineral, “deemed critical to U.S. national security and theeconomy”. Fluorspar remains the only non-metallic Critical Mineralwhich is 100% imported in the entire country. Fluorspar’sclassification as a Critical Mineral in the United States translatesto a faster permitting period, enabling mining operations to initiatemore quickly than operations for conventional minerals.
James Walker, President and CEO of the Company said,“This is a major step for our Company and business. The financingwill enable the completion of a large processing facility and give theCompany the financial reach to accelerate construction, move forwardour acidspar production plans, and install a modern, well-designedindustrial infrastructure at our Utah manufacturing site. Thisfinancing ensures a very active and productive 2024 for our Company,we have the resources to build a much-expanded operation able to caterto a far larger market.”
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARES STRATEGIC MINING INC.
James Walker
Chief Executive Officer and President
For further information, please contact James Walker at jwalker@aresmining.com
DISCLOSURE AND FORWARD-LOOKINGSTATEMENTS:
Companies typically rely oncomprehensive feasibility reports on mineral reserve estimates toreduce the risks and uncertainties associated with a productiondecision. Historically, situations where the issuer decides to put amineral project into production without first establishing mineralreserves supported by a technical report and completing a feasibilitystudy have a higher risk of economic or technical failure, though someindustrial mineral ventures are relatively simple operations with lowlevels of investment and risk, where the operating entity hasdetermined that a formal prefeasibility or feasibility study inconformance with NI 43-101 and 43-101 CP is not required for aproduction decision. Based on historical engineering work, geologicalreports, historical production data and current engineering workcompleted or in the process by Ares, the Company intends to moveforward with the development of its Utah asset.
Certain information in this newsrelease may contain forward-looking statements that involvesubstantial known and unknown risks and uncertainties. Forward-lookingstatements are often identified by terms such as “will”,“may”, “should”, “anticipate”, “expects” and similarexpressions. All statements other than statements of historical factincluded in this news release are forward-looking statements thatinvolve risks and uncertainties. There can be no assurance that suchstatements will prove to be accurate and actual results and futureevents could differ materially from those anticipated in suchstatements. Important factors that could cause actual results todiffer materially from the Company’s expectations include thefailure to satisfy the conditions of the relevant securitiesexchange(s) and other risks detailed from time to time in the filingsmade by the Company with securities regulations. The reader iscautioned that assumptions used in the preparation of anyforward-looking information may prove to be incorrect. Events orcircumstances may cause actual results to differ materially from thosepredicted, as a result of numerous known and unknown risks,uncertainties, and other factors, many of which are beyond the controlof the Company. The reader is cautioned not to place undue reliance onany forward-looking information. Such information, although consideredreasonable by management at the time of preparation, may prove to beincorrect and actual results may differ materially from thoseanticipated. Forward-looking statements contained in this news releaseare expressly qualified by this cautionary statement. Theforward-looking statements contained in this news release are made asof the date of this news release and the Company disclaims anyintention or obligation to update or revise such information, exceptas required by applicable law.
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