Ares Strategic Mining Inc. (OTC:ARSMF) officially confirmed on Friday that it has secured a substantial contract from the U.S. Department of Defense (DoD), awarded through the Defense Logistics Agency (DLA). The agreement is an Indefinite Delivery/Indefinite Quantity (IDIQ) contract extending up to five years, carrying an initial value of approximately $168.9 million and the potential to escalate to a maximum contract value of $250 million through additional task orders.
The contract's announcement was made public on Tuesday, January 13, via SAM.gov, the official contracting resource managed by the Department of Defense.
James Walker, Chief Executive Officer of Ares Strategic Mining, emphasized the significance of this award in the context of national priorities. He stated, "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." He further commented that this contract confirms Ares' leadership position in reconstructing the United States' capability to produce critical minerals and ensures that the products delivered under this agreement will directly bolster national resilience, industrial capacity, and long-term security. Walker summarized, "We are now a partner in America's strategic future."
The contract identifies Ares Strategic Mining as the sole-source provider for acid-grade fluorspar to the U.S. government. Moreover, Ares holds a unique position as the only producer within the United States capable of supplying this critical material on a large scale.
Acid-grade fluorspar, classified by the U.S. government as a critical mineral, carries vital importance due to its usage in producing hydrofluoric acid and various fluorine-based compounds. These materials are essential components in defense systems, industrial manufacturing processes, and emerging advanced technologies.
The contract is specifically linked to Ares' Lost Sheep Fluorspar Project located in Delta, Utah. The company owns this project outright, and it is fully permitted for development and production activities.
The Lost Sheep Project encompasses approximately 5,982 acres, distributed across 353 mining claims. An NI 43-101 compliant technical report details an extensive inventory of high-grade fluorspar characterized by low impurity levels. Additionally, the project has a mining plan authorized by the Bureau of Land Management, meeting regulatory requirements.
This multi-year contract awarded by the Pentagon illustrates a broader trend where critical minerals have swiftly risen to prominence as a strategic and investment priority heading into 2026. These minerals, which include rare earth elements and other strategically important metals, are progressively recognized by policy makers and investors as indispensable inputs in the manufacture of advanced defense technologies, electronic devices, clean energy infrastructure, and other high-growth sectors.
From an investment perspective, the Department of Defense's strategy to secure its supply chain through contracts like the one granted to Ares highlights a growing government role in procurement. This approach is likely to serve as a catalyst in driving demand, concurrently underscoring the market’s valuation premium on companies integrated within the domestic critical minerals value chain.
Reflecting the market's response, Ares Strategic Mining's shares (OTC: ARSMF) concluded trading on Thursday with a notable gain of 13.81%, closing at $0.52.