REalloys has entered into a non-binding memorandum of understanding (MoU) with U.S. Critical Materials (USCM), which owns the Sheep Creek rare earth project in Ravalli County, Montana., US

Under the MoU, REalloys plans to obtain up to 10% of production from Sheep Creek.

The material is intended to flow into the company’s domestic midstream and downstream operations for US strategic defence stockpiles.

USCM’s Sheep Creek project comprises about 334 claims over an area of roughly 11 square miles and has reported rare earth grades of around 9% total rare earth elements.

The deposit includes heavy rare earth elements such as dysprosium, terbium and yttrium, along with other listed critical minerals including gallium.

Gallium averages more than 300 ppm at the project and is used in various defence and advanced technology applications.

Access to 10% of production from a deposit of this grade and size would provide REalloys with an additional domestic supply source alongside its existing network in allied jurisdictions, ahead of planned restrictions on Chinese-origin rare earth procurement scheduled to come into force in 2027.

The MoU sets out a framework for potential equity investment or equity swaps between the parties and joint efforts to secure government funding.

In addition, the agreement covers further metallurgical testing and optimisation of heavy rare earth processing flowsheets.

The parties aim to negotiate a definitive long-term offtake agreement within 12 months of signing.

U.S. Critical Materials executive chairman Harvey Kaye said: “Sheep Creek is America's rare earth answer to Chinese supply dominance. The US cannot claim critical mineral sovereignty while depending on foreign adversaries for the heavy rare earths that guide our missiles, power our fighter jets, and drive every advanced defense platform in our arsenal. Sheep Creek changes that equation.

“It is the highest-grade rare earth deposit in the country, it is fully domestic, and it is now connected to the only midstream and metallisation platform in the Western Hemisphere capable of converting that resource into defense-ready metals.”

In February 2026, Blackboxstocks announced that REalloys, its prospective merger target, signed a series of non-binding agreements for ten years with AltynGroup Kazakhstan to establish a strategic partnership.