Ares Accelerates Flotation Plant Construction Following U.S. Defense Contract Award and New $10M Private Placement

Core Insights - Ares Strategic Mining Inc. has received a $168.9 million award under the U.S. Department of Defense's IDIQ contract and is launching a $10 million private placement to accelerate the construction of its acidspar flotation plant in Utah [1][2] - The company aims to become the sole domestic supplier of acid-grade fluorspar, a critical mineral designated by the U.S. [1][2] Construction Acceleration - The flotation plant is a key part of Ares' vertically integrated strategy to produce high-purity fluorspar [2] - The construction will proceed on an expedited timeline, partially funded by the new private placement offering of up to $10 million CAD [2][7] National and Global Impact - The U.S. has been entirely import-dependent on fluorspar for decades, and Ares is positioned to change this with the advancement of the Lost Sheep Mine and the flotation plant nearing completion [2] - Ares is becoming a cornerstone of America's domestic acidspar supply, with a $250 million contract ceiling under the DLA IDIQ [2] Strategic Positioning - Ares is aligned with national priorities and is recognized for rebuilding a critical American supply chain [3] Upcoming Milestones - The company plans to complete the flotation plant foundation and mechanical installations, begin first acidspar processing runs, execute first deliveries under the DoD contract, and advance uplisting to a senior exchange [6] Private Placement Details - Ares is offering a non-brokered private placement of up to 16,666,666 units at a price of $0.60 per unit for gross proceeds of up to $10 million [7][8] - Each unit consists of one common share and one-half of a non-transferable common share purchase warrant, exercisable at $0.75 per share for two years [8] Use of Proceeds - The net proceeds from the offering will be used to further develop the Lost Sheep fluorspar project, repay certain debts, and for general corporate working capital [10]