Trump Administration To Invest $1.6 Billion In USA Rare Earth: Report

The Trump administration is planning to invest $1.6 billion into USA Rare Earth, the Financial Times reported, citing unidentified people familiar with the matter.

The US government will receive a 10% stake in the mining company, the paper said, adding that the the investment and a separate $1 billion private financial deal are expected to be announced on Monday.

One of the people told the Financial Times that the government will receive 16.1 million shares in USA Rare Earth and warrants for another 17.6 million shares, both priced at $17.17 a share.

USA Rare Earth will also receive $1.3 billion in senior secured debt financing at market rates from the government, which will be funded from a finance facility created for the Department of Commerce as part of the CHIPS and Science Act, the report said. 

USA Rare Earth and the Commerce Department could not be immediately reached for comment outside of normal business hours.

ALSO READ: US Govt Shutdown Looms As Democrats Vow to Block Funding Over Minneapolis ICE Killings

Watch LIVE TV, Get Stock Market Updates,
Top Business, IPO and
Latest News on NDTV Profit.