(www.investorideas.com
Newswire) a go-to platform for big investing ideas, including mining
stocks issues a news and trading alert for USA Rare Earth, Inc. (Nasdaq: USAR)
The stock is trending on news of a $2.8 billion deal, currently
trading at $22.81
+2.85 (+14.31%) on a volume of over 18 million shares.
USA Rare Earth, Inc. (Nasdaq: USAR) just announced a definitive
agreement to acquire 100% of Serra Verde Group , owner of the Pela
Ema rare earth mine and processing plant in Goiás, Brazil.
The transaction consideration consists of $300 million in cash and
126.849 million shares of newly issued USAR common stock, which at
USAR’s closing share price of $19.95 as of Friday, April 17,
2026, implies an equity value of c.$2.8 billion for Serra Verde. The
acquisition is expected to close in the third quarter of 2026,
subject to customary closing conditions and regulatory approvals.
Barbara Humpton, Chief Executive Officer of USA Rare Earth, stated,
“The acquisition of Serra Verde represents a transformational step
in delivering on our ambition to build a global champion and the
partner of choice in rare earth elements, oxides, metals, and
magnets. Serra Verde’s Pela Ema mine is a one-of-a-kind asset
and the only producer outside Asia capable of supplying all four
magnetic rare earths at scale, together with other vital REEs, such
as Yttrium. Serra Verde’s global importance is evidenced by
its 15-year offtake agreement with a special purpose vehicle
capitalized by various U.S. government entities, as well as private
capital sources, for 100% of its Phase 1 Nd, Pr, Dy, and Tb
production.
By combining Serra Verde’s world-class operations and team
with our processing, separation, metallization, and magnet-making
capabilities, we are advancing our goal of creating a fully
integrated platform that will serve as a cornerstone of global rare
earth supply security for decades to come.”
Thras Moraitis, Chief Executive Officer of Serra Verde Group,
stated, “Rare earths represent a strategic nexus where national and
energy security and technological supremacy converge. The Western
rare earth sector stands at a critical inflection point, as
governments and strategic industries urgently seek reliable sources
of critical rare earths—particularly scarce heavy rare earths.
Over Serra Verde’s 15-year journey, our team has remained
steadfastly focused on building a scaled, responsible source of
these vital materials that power forward-facing technologies.
Joining forces with USA Rare Earth accelerates the realization of
our shared vision: establishing a secure, diversified global rare
earth supply chain.
We are excited to contribute our operational expertise, government
partnerships, and significant growth potential to this combined
platform. Leveraging our proven track record and know-how in
upstream development, we will contribute to the development of USA
Rare Earth’s Round Top project.
Together, we believe the combined company will deliver a fully
integrated rare earth solution at scale, accelerate growth, and
create enhanced value for all stakeholders—including
shareholders, customers, employees, local communities, and
governments spanning Brazil, the United States, and our allies.”
Serra Verde’s product contains a high percentage of all four
magnetic rare earths, including the most critical and highly
valuable heavy rare earths (“HREEs”) Dysprosium
(“Dy”), Terbium (“Tb”), and Yttrium (“Y”).
The operation is fully permitted and entered production in 2024
following more than $1.1 billion in capital investment and critical
operational learnings and experience in pioneering production of the
first operating ionic clay deposit in the Western world.
Serra Verde has secured a $565 million financing package from the
U.S. International Development Finance Corporation
(“DFC”) to fully fund optimization and expansion
initiatives through to positive cash flow. In addition, Serra Verde
has secured a 15-year, 100% off-take agreement to supply a special
purpose vehicle capitalized by various U.S. government agencies, as
well as private capital sources (the “SPV”), with all four of the
magnetic rare earths that are required to make a permanent NdFeB
magnet. This offtake includes guaranteed minimum floor prices for
each of Nd, Pr, Dy, and Tb, which helps to de-risk cash flows and
provides access to shared upside.
At Phase 1 nameplate capacity, expected to be achieved by the end of
2027, Serra Verde is projected to produce c.6,400 metric tons of
TREO per year. On the basis of 100% separated oxide sales, Serra
Verde is expected to achieve an annualized run-rate EBITDA of
$550-$650 million by the end of 2027.
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