REalloys Inc. (NASDAQ: ALOY) announced today the signing of a non-binding Memorandum of Understanding (MOU) with U.S. Critical Materials Corp. (USCM) to secure up to 10% offtake from the Sheep Creek rare earth project in Ravalli County, Montana. This deposit is the highest-grade rare earth deposit in the United States, averaging approximately 9% total rare earth oxides (TREO) across a 7,277.5-acre land package with over 60 identified carbonatite formations, as independently verified by Activation Laboratories and Idaho National Laboratory.
The offtake agreement would feed domestically sourced heavy rare earth material directly into REalloys' advanced midstream and downstream operations, supplying U.S. strategic defense stockpiles. The deposit contains confirmed dysprosium and terbium, two of the most strategically sensitive heavy rare earth elements essential for high-performance permanent magnets used in F-35 fighter aircraft, missile guidance systems, and radar platforms. This move aligns with U.S. defense procurement requirements, as restrictions on Chinese-sourced rare earths are set to take full effect in 2027.
The MOU also establishes a framework for potential strategic equity investment and equity exchange, joint pursuit of government financing, and coordinated government relations. This partnership presents Congress and the executive branch with a unified, fully domestic heavy rare earth element supply chain narrative that involves zero Chinese involvement at any stage. REalloys CEO Lipi Sternheim emphasized the company's strategy of partnering with highest-grade developers across allied nations to build a diversified supply network designed to counteract Chinese dominance.
Harvey Kaye, Executive Chairman of U.S. Critical Materials Corp., stated that Sheep Creek is America's answer to Chinese supply dominance, connecting the highest-grade rare earth deposit to the only midstream and metallization platform in the Western Hemisphere capable of converting that resource into defense-ready metals. Under the MOU, both parties will advance metallurgical test work, optimize processing flowsheets, and negotiate a definitive long-term offtake agreement within one year.
REalloys is building a fully integrated North American mine-to-magnet supply chain, including upstream resource development at its Hoidas Lake asset in Saskatchewan, midstream processing with the Saskatchewan Research Council, and downstream manufacturing in Euclid, Ohio. The company serves federal agencies such as the Department of Defense, Department of Energy, and NASA. More information about REalloys is available at www.realloys.com, and about U.S. Critical Materials at www.uscriticalmaterials.com.
