Ares Strategic Mining Closes US$4,420,000 Financing For Construction Phase
Ares Strategic Mining Closes US$4,420,000 Financing
For Construction Phase
• Company secures USDA guaranteed loan to deploy for manufacturing capital costs.
• Financing will support construction of the new processing facility and tailings dam.
• Ares will acquire further industrial land and buildings as part of its expansion.
• Ares has a plant, equipment, and labor ready for deployment.
• Non-dilutive financing for construction of Ares’ manufacturing facility.
• Federal loan is among the least expensive financing options available nationally.
Vancouver, B.C. April 11th, 2023 — Ares Strategic Mining Inc. (the “Company”) (CSE: ARS)
(OTC:ARSMF) (FRA: N8I1), possessing the only permitted fluorspar mine in the United States, is
pleased to announce it has closed a loan of $4,420,000 USD ($6,000,000 CAD) from the U.S.
Department of Agriculture (USDA) under its Business and Industry Guaranteed Loan Program
(B&I). The B&I program is deployed by the Federal Government to promote rural development
and higher paying wages.
The Company arranged this non-dilutive financing to exclusively develop the Company’s
manufacturing operation at its processing site in Delta, Utah. The manufacturing operation will
be the first of its kind in the country and will be looking to bring back an entire industry to the
United States. Fluorspar is used in the manufacture of steel, aluminum, hydrofluoric acid, lithium-
ion batteries, electronics, cement, and glass industries. Currently 100% of all the U.S’ fluorspar is
imported, and the Company will be looking to become the only domestic producer.
The funds will be diligently deployed to create value for investors with a focus on production and
developing cashflow for the Company. The USDA financing is widely accepted as among the least
expensive financing options available in the country. The Federal support for the Company’s
project will give the Company far greater ability to accelerate its plans. The proceeds will be
expended on the manufacturing facility construction and infrastructure.
James Walker, President and CEO of the Company said, “This financing is a major advancement
for the Company, and great news for our shareholders. The closing has taken an extended time,
which has slowed Ares’ ability to advance as quickly as planned but has allowed the Company to
comprehensively plan for the next stage of development. We have already obtained a processing
plant, and the expertise needed to construct our facility. This financing provides the company
with the resources it needs to complete our plant manufacturing operation construction,
complete the tailings dam, upgrade the water wells, finish the rail spur, and have an operational
facility ready to manufacture.”
In 2018 the U.S. government classified fluorspar as a Critical Mineral, “deemed critical to U.S.
national security and the economy”. Fluorspar remains the only non-metallic Critical Mineral
which is 100% imported in the entire country. Fluorspar’s classification as a Critical Mineral in the
United States translates to a faster permitting period, enabling mining operations to initiate more
quickly than operations for conventional minerals. Fluorspar
The Company has arranged a 15-year term, with interest-Only payments monthly for the first 12
months, followed by monthly principal and interest payments, fully amortizing the principal
balance over the remaining 168-month period.
Lost Sheep Fluorspar Project – Delta, Utah
• 100% owned – 5,982 acres – 353 Claims
• Located in the Spor Mountain area, Juab County, Utah, approximately 214 km south-west of
Salt Lake City.
• Fully Permitted – including mining permits.
• NI 43-101 Technical Report identified extensive high-grade fluorspar with low levels of
impurities.
• Mining plan approved by BLM1
First approved by Rex Rowley – Area Manager, Bureau of Land Management – 24th August 1992.
Renewed by Paul B. Baker – Minerals Program Manager, Bureau of Land Management – 12th December 2016.
ON BEHALF OF THE BOARD OF DIRECTORS OF
ARES STRATEGIC MINING INC.
James Walker
Chief Executive Officer and President
For further information, please contact James Walker by phone at 604-345-1576 or by email at
DISCLOSURE AND FORWARD-LOOKING STATEMENTS:
Companies typically rely on comprehensive feasibility reports on mineral reserve estimates to reduce the
risks and uncertainties associated with a production decision. Historically, situations where the issuer
decides to put a mineral project into production without first establishing mineral reserves supported by a
technical report and completing a feasibility study have a higher risk of economic or technical failure,
though some industrial mineral ventures are relatively simple operations with low levels of investment and
risk, where the operating entity has determined that a formal prefeasibility or feasibility study in
conformance with NI 43-101 and 43-101 CP is not required for a production decision. Based on historical
engineering work, geological reports, historical production data and current engineering work completed
or in the process by Ares, the Company intends to move forward with the development of its Utah asset.
Certain information in this news release may contain forward-looking statements that involve substantial
known and unknown risks and uncertainties. Forward-looking statements are often identified by terms
such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than
statements of historical fact included in this news release are forward-looking statements that involve risks
and uncertainties. There can be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in such statements. I mportant
factors that could cause actual results to differ materially from the Company’s expectations include the
failure to satisfy the conditions of the relevant securities exchange(s) and other risks detailed from time to
time in the filings made by the Company with securities regulations. The reader is cautioned that
assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events
or circumstances may cause actual results to differ materially from those predicted, as a result of numerous
known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the
Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such
information, although considered reasonable by management at the time of preparation, may prove to be
incorrect and actual results may differ materially from those anticipated. Forward-looking statements
contained in this news release are expressly qualified by this cautionary statement. The forward-looking
statements contained in this news release are made as of the date of this news release and the Company
disclaims any intention or obligation to update or revise such information, except as required by applicable
law.