AR3 Secures $5M Grant, Unveils New Uranium Discovery, Raises $3.6M Capital

Government Backing Accelerates Koppamurra Development

Australian Rare Earths Limited (ASX: AR3) has taken a significant step forward in its rare earths ambitions by finalising a $5 million grant agreement with the Australian Government. This funding, part of the International Partnerships in Critical Minerals Program, is co-funding a comprehensive work program that includes advanced metallurgical testwork, completion of a Pre-Feasibility Study (PFS), and the design and operation of a demonstration plant for the Koppamurra Rare Earths Project.

The initial $750,000 instalment was received in December 2024, and metallurgical testwork commenced shortly after the quarter ended. This phase focuses on optimising key processing aspects such as rare earth recovery, water recycling, impurity removal, and precipitation. AR3’s collaboration with the Australian Nuclear Science and Technology Organisation (ANSTO) and Neo Performance Materials Inc., a global leader in rare earth permanent magnets, underscores the project’s strategic importance and technical robustness.

Promising Uranium Discoveries at Overland

The Overland Uranium Project continues to reveal compelling exploration results. Drilling in 2024 identified a north/south trending palaeovalley, an ideal geological setting for sedimentary-hosted uranium deposits. Assays confirmed uranium mineralisation, validating AR3’s geological model. Notably, the 2025 drilling program uncovered a new near-surface, widespread calcrete-hosted uranium occurrence, with significant gamma and pXRF readings.

This shallow uranium mineralisation, confirmed by chemical assays, includes intervals with uranium concentrations up to 103ppm U3O8. The calcrete-hosted style is analogous to deposits found in Namibia and Western Australia, suggesting a promising exploration frontier. AR3’s extensive 4,000km² land package now shows potential for both near-surface calcrete-hosted and deeper In-Situ Recovery (ISR)-amenable uranium deposits, positioning the company well within the evolving uranium market.

Strengthened Financial Position and Strategic Growth

AR3 closed the quarter with a cash balance of approximately $4 million, bolstered post-quarter by a well-supported non-renounceable rights issue that raised $3.6 million. The capital raise, priced at $0.068 per share, aims to accelerate exploration and development activities across both the Koppamurra and Overland projects. Shareholders also received free attaching options, incentivising participation amid global market volatility and recent Chinese export controls on rare earth elements.

Further corporate milestones include ministerial consent to acquire 100% interest in sedimentary-hosted uranium rights of EL6678, expanding AR3’s exploration footprint. Managing Director Travis Beinke highlighted the geopolitical context, noting the strategic importance of diversifying rare earth supply chains amid China’s export restrictions and Australia’s commitment to a Critical Minerals Strategic Reserve.

Outlook and Market Positioning

With metallurgical testwork progressing and the PFS on track for completion in 2025, AR3 is advancing towards commercialisation of the Koppamurra project. The company’s approach, leveraging ionic clay-hosted deposits amenable to heap leach processing, offers a potentially faster and lower-cost pathway to market compared to traditional rare earth projects.

Meanwhile, the Overland Uranium Project’s dual potential for shallow and deeper deposits provides a diversified exploration pipeline. AR3’s strategic partnerships, government support, and capital raising success collectively position it as a noteworthy player in the critical minerals sector, aligned with global clean energy transition demands.