Jan. 26 (UPI) -- Critical minerals startup USA Rare Earth announced Monday that the Department of Commerce will give the company a $1.3 billion loan and $277 million in federal funding.
USA Rare Earth will issue Commerce 16.1 million shares of common stock and 17.6 million in warrants. The federal government will have an 8% to 16% stake in the company, depending on whether it uses the warrants, a filing with the Securities and Exchange Commission said.
USA Rare Earth shares rose more than 20% Monday after the announcement, CNBC reported.
The injection of funds will help the company build a magnet manufacturing plant in Stillwater, Okla., and a mine at the Round Top mineral deposit in Sierra Blanca, Texas.
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