The proposed transaction values USARE at a pro-forma enterprise value of US$870 million and includes an initial circa US$35 million PIPE investment, of which US$25 million funded in connection with the signing of the business combination agreement.
USARE is developing a vertically integrated US rare earth element magnet supply chain, with an early-mover advantage to become a significant ex-China producer. Founded in 2019, USARE has permanent magnet production equipment on site at its Stillwater, Oklahoma location. Phase one of the magnet facility is expected to be operational at the end of 2025 and will have a production capacity of up to 1,200 tpa, initially supplied by third party feedstock.
Carey Olsen partner Dylan Wiltermuth and associate Nich Vasic advised USARE alongside US counsel King & Spalding LLP.
Dylan Wiltermuth comments: "We are pleased to have advised USARE on its entry into a definitive business combination agreement with Inflection Point Acquisition Corp. II. This transaction highlights the strength of our bench and expertise in the natural resource and capital markets sectors."