REalloys Inc. (NASDAQ: ALOY), a U.S. based mine to magnet rare earth company, announced a non-binding Memorandum of Understanding (MOU) with U.S. Critical Materials Corp. (USCM), owner of the Sheep Creek rare earth project in Ravalli County, Montana. The MOU establishes a framework for REalloys to secure up to 10% offtake from Sheep Creek, which averages approximately 9% TREO across a 7,277.5-acre land package with over 60 identified carbonatite formations, independently verified by Activation Laboratories and Idaho National Laboratory.
The deposit contains confirmed dysprosium and terbium, two of the most strategically sensitive heavy rare earth elements used in high-performance permanent magnets for F-35 fighter aircraft, missile guidance systems, radar platforms, and other advanced U.S. defense platforms. At 10% offtake, REalloys gains a potentially material domestic feedstock source to complement its diversified global allied-nation supply network, adding a critical domestic anchor as procurement restrictions on Chinese-sourced rare earths take full effect in 2027.
The MOU also includes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. REalloys CEO Lipi Sternheim emphasized the company's diversified supply strategy: "While others rely on a single source for their rare earth feedstock, REalloys is executing a fundamentally different strategy – partnering with the highest-grade developers across allied nations to build a diversified supply network specifically designed to counteract Chinese dominance." Harvey Kaye, Executive Chairman of USCM, underscored the national security implications: "Sheep Creek changes that equation. It is the highest-grade rare earth deposit in the country, it is fully domestic, and it is now connected to the only midstream and metallization platform in the Western Hemisphere capable of converting that resource into defense-ready metals."
Under the MOU, the parties will advance metallurgical test work, optimize HREE processing flowsheets, and negotiate a definitive long-term offtake agreement, with reasonable efforts to execute within one year. REalloys' downstream operations in Euclid, Ohio, produce advanced heavy rare earth metals, alloys, and magnet components for defense, clean-energy, and high-performance industrial applications, serving the Department of Defense, Department of Energy, and NASA.
U.S. Critical Materials Corp. is a private exploration and technology company focused on developing rare earth elements and critical minerals to support U.S. national security and supply chain independence. The company owns the Sheep Creek Project in Montana and is advancing the project through collaborations with Idaho National Laboratory and strategic partners. More information is available at www.uscriticalmaterials.com.
REalloys is advancing a fully integrated North American mine-to-magnet supply chain encompassing upstream resource development, midstream processing, and downstream manufacturing. The company's upstream foundation includes its Hoidas Lake rare-earth asset in Saskatchewan and a diversified network of allied feedstock and recycling partners. For more information, visit www.realloys.com.
