Federal Court Sets April 2026 Trial in US1’s Rare Earth Tenements Dispute
US1 Critical Minerals has obtained a Federal Court undertaking preventing the transfer or encumbrance of disputed Rare Earth tenements in California, with a trial scheduled for April 2026.
- Federal Court grants undertaking to maintain status quo on disputed tenements
- Dateline Resources joined as a party in the legal proceedings
- Trial set for 20 April 2026, estimated duration five days
- Dispute involves Apex USA Resources and Mr Stephen Baghdadi
- Company commits to ongoing market updates
Background of the Dispute
US1 Critical Minerals Limited (ASX, USC) has provided a significant update on its ongoing legal dispute concerning Rare Earth Elements tenements in California, USA. The dispute involves the company’s partner, Apex USA Resources LLC, and a third party, Mr Stephen Baghdadi. The contested tenements were identified under an agreement between US1 and Apex aimed at exploring and developing promising Rare Earth mineral assets in the United States.
Recent Court Developments
Following initial proceedings filed jointly by US1 and Apex in the Federal Court of Australia, the matter has escalated with Dateline Resources Limited (ASX, DTR) being joined as a party. At a hearing on 23 December 2025, the court accepted an undertaking from Mr Baghdadi and Dateline, including its subsidiaries, agreeing not to encumber, sell, transfer, or otherwise disturb the disputed tenements without providing 14 business days’ written notice to US1 and Apex. This move effectively preserves the status quo while the legal process unfolds.
Looking Ahead to Trial
The Federal Court has scheduled a trial to address the core issues of the dispute, commencing on 20 April 2026 and expected to last approximately five days. This trial will be pivotal in determining the future control and development rights over the tenements, which are strategically important given the global demand for Rare Earth Elements, critical for advanced technologies and clean energy applications.
Implications for US1 Critical Minerals
While the court’s undertaking provides temporary protection for US1’s interests, the uncertainty surrounding the dispute’s outcome poses potential risks to the company’s project timelines and asset valuations. The involvement of Dateline Resources adds complexity, suggesting competing claims or interests in these valuable mineral rights. US1 has committed to keeping the market informed as the situation develops, underscoring the material nature of this legal challenge.
Strategic Context
This legal episode highlights the challenges faced by junior mining companies operating in competitive jurisdictions and the importance of clear agreements and dispute resolution mechanisms. For investors, the resolution of this dispute will be a key catalyst, potentially unlocking or impeding US1’s ambitions in the US Rare Earth sector.
Bottom Line?
The April trial will be a critical juncture for US1’s US Rare Earth ambitions, with market watchers keenly awaiting the outcome.
Questions in the middle?
- What are the underlying claims and stakes of Mr Baghdadi and Dateline Resources in the tenements?
- How might the trial outcome affect US1’s project development timeline and valuation?
- Could this dispute influence US1’s future partnerships or strategy in the US Rare Earth sector?
