Ares Strategic Mining Inc. (CSE: ARS) (OTC: ARSMF) (FRA: N8I1) has been awarded a $168.9 million contract by the U.S. Department of Defense (DoD) through the Defense Logistics Agency (DLA), with potential task orders up to $250 million over five years. The contract is part of an Indefinite Delivery/Indefinite Quantity (IDIQ) agreement aimed at strengthening America's domestic manufacturing and supply base and rebuilding strategic mineral stockpiles.
James Walker, CEO of Ares Strategic Mining, said, "This is the kind of contract that transforms companies, and secures the future of U.S. industry. We're not just producing fluorspar; we're helping build a more resilient and secure domestic supply chain for critical minerals." The award establishes Ares as the sole-source domestic supplier of acid-grade fluorspar to the U.S. government, a critical mineral essential for defense systems, steel and aluminum production, fluorochemical manufacturing, and semiconductors.
Acid-grade fluorspar, or acidspar, is vital for producing hydrofluoric acid and fluorine-based materials. Historically, the United States has been 100% import-dependent for fluorspar, making this contract a turning point for national security. The Lost Sheep Project in Utah, fully permitted with mining plans approved by the Bureau of Land Management, positions Ares as the only U.S. producer capable of delivering at scale.
Walker added, "This award reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain. We are proud to support the U.S. government's strategic material reserves by supplying domestically sourced, high-grade acidspar." The contract ensures Ares' products directly contribute to national resilience, industrial strength, and long-term security.
The award is a major milestone for Ares, validating the national importance of its Utah-based operations. With a fully permitted 5,982-acre site and an NI 43-101 Technical Report confirming high-grade fluorspar with low impurities, Ares is poised to support defense readiness, clean energy supply chains, and high-tech applications. The contract highlights the DoD's focus on domestic sourcing to mitigate supply chain vulnerabilities.
