NEW YORK: The Trump administration is planning to invest US$1.6bil into USA Rare Earth, the Financial Times reports, citing unidentified people familiar with the matter.
The US government will receive a 10% stake in the mining company, the paper said, adding that the the investment and a separate US$1bil private financial deal are expected to be announced today.
One of the people told the Financial Times that the government will receive 16.1 million shares in USA Rare Earth and warrants for another 17.6 million shares, both priced at US$17.17 a share.
USA Rare Earth will also receive US$1.3bil in senior secured debt financing at market rates from the government, which will be funded from a finance facility created for the Department of Commerce as part of the CHIPS and Science Act, the report said. — Bloomberg
