USA Rare Earth Secures $75M PIPE Investment
Deal News | May 06, 2025 | White & Case LLP
White & Case LLP has advised USA Rare Earth, Inc. on securing $75 million through a PIPE deal involving equity capital via a securities purchase agreement with a new institutional investor. Under the agreement, USA Rare Earth issued about 8.55 million common stock shares, pre-funded warrants for around 2.16 million shares, and additional warrants for 10.71 million shares. The funds are aimed at supporting USAR’s efforts to construct a neodymium magnet manufacturing facility in Oklahoma and develop mining rights in West Texas. USAR is committed to establishing a comprehensive rare earth magnet production supply chain, vital for sectors like defense and consumer electronics.
Sectors
- Rare Earth Mining and Production
- Legal Advisory
- Investment Banking
Geography
- United States – USA Rare Earth and the legal advisors are based in the US, and the investment activity centers around their operations in Oklahoma and Texas.
Industry
- Rare Earth Mining and Production – The article discusses USA Rare Earth, which is involved in mining and producing rare earth minerals and magnets.
- Legal Advisory – The legal firm White & Case provided advisory services for the PIPE investment transaction.
- Investment Banking – The article involves financial transactions related to PIPE investment.
Financials
- 75 million USD – The total amount of equity capital raised through the PIPE investment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| USA Rare Earth, Inc. | Target Company | Company | A company engaged in building a rare earth magnet production supply chain and developing mineral deposits. |
| White & Case LLP | Legal Advisor | Company | A global law firm advising USA Rare Earth on the PIPE investment. |
| Joel Rubinstein | Capital Markets Partner | Person | A partner at White & Case who led the legal advisory team. |
| Russell Deutsch | Associate | Person | An associate at White & Case involved in advising on the transaction. |