- Usa Rare Earth Inc
- 20 April 2026 13:46:23
Source: Sharecast
The transaction comprises $300m in cash and just under 127m shares of newly issued USAR common stock at Friday's closing price of $19.95.
The deal gives USAR access to the Pela Ema rare earth mine and processing plant in Goiás, Brazil, which is a "one-of-a-kind asset and the only producer outside Asia capable of supplying all four magnetic rare earths at scale", according to USAR chief executive Barbara Humpton.
Serra Verde also has a 15-year offtake agreement with a special purpose vehicle, capitalised by various US government agencies.
"The acquisition of Serra Verde represents a transformational step in delivering on our ambition to build a global champion and the partner of choice in rare earth elements, oxides, metals and magnets," Humpton said.
Serra Verde is expected to achieve an annualised run-rate EBITDA of $550m-650m by the end of next year, with the combined group expected to generate $1.8bn of annualised EBITDA by the end of 2030, with 80% cash flow conversion, USAR said.
The combined companies also has more than $3.2bn of pro-forma liquidity, comprised of cash and cash equivalents of $1.2bn with access to a further $1.8bn in milestone-based liquidity in US Department of Commerce equity and debt commitments.
USAR futures were 9.5% higher at $21.85 by 1345 BST.