Ares Strategic Mining Inc. has been awarded a $168,938,267.30 contract by the U.S. Department of Defense through the Defense Logistics Agency, representing a major initiative to strengthen America's domestic manufacturing and supply base while supporting the rebuilding of strategic mineral stockpiles. The award is part of a five-year Indefinite Delivery/Indefinite Quantity agreement with a total contract ceiling of up to $250 million.
This contract establishes Ares as a sole-source domestic supplier of acid-grade fluorspar to the U.S. government, making it the only U.S.-based operation positioned to deliver this critical mineral at scale. Acid-grade fluorspar, designated as a critical mineral by the U.S. government, is essential to defense readiness, industrial manufacturing, clean energy supply chains, and high-tech applications. It serves as a vital input for producing hydrofluoric acid and fluorine-based materials that support defense systems, missile technology, steel and aluminum production, fluorochemical manufacturing, semiconductors, batteries, and next-generation electronics.
The strategic significance of this contract cannot be overstated, as the United States has historically been 100% import-dependent for fluorspar. This award marks a turning point in establishing a domestic supply chain that has become a critical national priority. The contract validates the importance of Ares' Utah-based Lost Sheep Project and positions the company at the center of America's effort to build a robust domestic sourcing network for long-term self-sufficiency.
James Walker, CEO of Ares Strategic Mining, emphasized that "This is the kind of contract that transforms companies, and secures the future of U.S. industry. We're not just producing fluorspar; we're helping build a more resilient and secure domestic supply chain for critical minerals." He added that the award reflects the U.S. government's commitment to revitalizing a long-neglected critical mineral supply chain and that Ares is now "a partner in America's strategic future."
The Lost Sheep Fluorspar Project in Delta, Utah, which comprises 5,982 acres with 353 claims in the Spor Mountain area, is fully permitted for mining operations. According to the company's NI 43-101 Technical Report, the project contains extensive high-grade fluorspar with low levels of impurities. The mining plan was first approved by the Bureau of Land Management in 1992 and renewed in 2016, as documented in filings with securities regulators at https://www.sedarplus.ca/.
This contract represents more than just a business transaction for Ares Strategic Mining; it signifies a fundamental shift in how the United States approaches critical mineral security. By investing in domestic production capabilities, the Pentagon is addressing vulnerabilities in supply chains that have become increasingly apparent in recent years. The move supports broader national security objectives while promoting industrial strength and long-term economic resilience through prioritized domestic sourcing of materials essential to modern technology and infrastructure.
