USA Rare Earth announced that the U.S. Department of War has provided $750 million in funding to a special purpose vehicle (SPV) and entered into forward purchase contracts for at least $300 million of rare earth products, satisfying a key condition precedent for its merger with Serra Verde Rare Earths. The SPV also secured a commitment letter from a Tier-1 bank for up to $500 million in senior debt facilities, bringing total government-backed capitalization to $1.55 billion. This amendment to the offtake agreement allows the merger to proceed even if the debt facility is not fully funded prior to closing. The company expects to close the acquisition following its special stockholder meeting on August 28, 2026. USA Rare Earth operates in the rare earth mining and permanent magnet manufacturing industry.
