Ares Strategic Mining Inc. (OTC:ARSMF) confirmed Friday that it has been awarded a $168,9 million U.S. Department of Defense contract through the Defense Logistics Agency under a five-year framework with a ceiling of up to $250 million.
Details
The deal is structured as a five-year Indefinite Delivery/Indefinite Quantity contract with an initial value of about $168.9 million and potential task orders that could raise the total contract value to $250 million.
The award was announced on Tuesday, Jan. 13, on SAM.gov, the Department of Defense’s contracting website.
CEO James Walker said, “This award reflects the U.S. government’s commitment to revitalizing a long-neglected critical mineral supply chain. We are proud to support the U.S. government’s strategic material reserves by supplying domestically sourced, high-grade acidspar. This contract confirms our leadership in rebuilding U.S. critical mineral capability and ensures our products directly contribute to national resilience, industrial strength, and long-term security. We are now a partner in America’s strategic future.”
The contract establishes Ares as a sole-source domestic supplier of acid-grade fluorspar to the U.S. government and the only U.S. producer positioned to deliver the material at scale.
The company said acid-grade fluorspar is a U.S.-designated critical mineral used to produce hydrofluoric acid and other fluorine-based materials that support defense systems, industrial manufacturing, and advanced technologies.
The contract is tied to Ares’ Lost Sheep Fluorspar Project in Delta, Utah, which the company said is 100% owned and fully permitted.
Ares said the project spans 5,982 acres across 353 claims, has an NI 43-101 technical report identifying extensive high-grade fluorspar with low impurities, and has a mining plan approved by the Bureau of Land Management.
Why It Matters
More broadly, the multi-year Pentagon contract highlights how critical minerals are emerging as a central strategic and investment theme for 2026.
Critical minerals — including rare earths and other strategic metals — are increasingly viewed by investors and policymakers as essential inputs for advanced defense systems, electronics, clean energy infrastructure and high-growth technologies.
For investors, the Pentagon’s move to secure long-term supplies through contracts like the one awarded to Ares signals expanding government procurement as a demand catalyst and underscores the strategic premium markets are placing on companies positioned within the domestic critical minerals value chain.
Price Action: ARSMF closed 13.81% higher at $0.52 on Thursday.
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