SYDNEY: Australian explorer Lodestar Minerals Limited (ASX: LSR) has agreed to acquire the Virgin Mountain heavy rare earth project in Arizona, a site rich in heavy rare earth elements (HREEs) critical for defence, clean energy, and technology sectors, the company announced on Monday.
The move comes as China, which dominates global rare earth production, further restricted exports of five additional rare earth elements in October 2025, bringing the total number of controlled elements to 12. The Virgin Mountain project contains all 12 restricted elements, positioning it as a potential strategic asset for U.S. supply chain resilience.
Lodestar will fund the acquisition and initial exploration through a A$3.25 million placement cornerstoned by Tribeca Investment Partners, S3 Consortium, and John Hancock’s family office, Astrotricha Capital SEZC.
The Virgin Mountain project is located near the Nevada border, roughly two hours by road from MP Materials’ Mountain Pass Mine – the only active rare earth producer in the United States. MP Materials recently secured US$550 million in U.S. Department of Defense funding and a US$500 million partnership with Apple to boost domestic rare earth magnet production.
“One of the advantages of the Virgin Mountain project is its high concentration of heavy rare earth elements,” said Lodestar Chairman Ross Taylor. “MP Materials’ Mountain Pass Mine contains extremely low concentrations of HREE, providing a unique opportunity to supply feedstock for their planned HREE facility.”
Due diligence sampling in 2022 by vendor Globex Mining Enterprises returned high-grade results, including 1.26% total rare earth oxides (TREO) with 36% HREO and 20% neodymium-praseodymium (Nd/Pr) – key elements for permanent magnets used in electric vehicles and wind turbines.
The project has a documented exploration history dating to the 1950s, when the U.S. Atomic Energy Commission first identified monazite and xenotime mineralisation. A 760-metre structural trend mapped by the Arizona Geological Survey remains a primary target for Lodestar’s upcoming field work, scheduled to begin before year-end.
Lodestar plans immediate surface sampling, mapping, geophysical surveys, and mineralogical studies, with metallurgical test work expected by late 2026. The company will also seek U.S. federal funding and Fast-41 permitting support.
The acquisition is subject to shareholder approval, with the option to be exercised by January 3, 2026.