Our Perspective | USA Rare Earth

July 15, 2019

At Bayshore, we pride ourselves on being “ahead of the institutional herd.” The investments we make are carefully and thoughtfully chosen and must meet a stringent due diligence process. We very literally put our money where our mouth is, and our investments reflect our core values not only as a firm but as individuals. It is very rare in the investment world to have the need for capital, political will and investment opportunity converge on one idea. This is precisely what had to happen to entice Bayshore’s investment team to take a hard look at our latest partnership with USA Rare Earth, LLC (USARE).

USA Rare Earth is developing the Round Top rare earth project together with Texas Mineral Resources Corp. (TMRC: OTCQB). Under its agreement with TMRC, USA Rare Earth has an option to acquire up to an 80% interest in the Round Top project in Hudspeth County, Texas.

At first, a mining company was not something that we were looking to be involved in. From an environmental perspective—are the risks really worth the reward? However, most of you reading this are doing so from either a smart phone or a tablet—and the elements needed for those devices are largely coming from overseas. Until now.

“We are excited to be partnering with a world class team dedicated to developing the United States’ only viable deposit of heavy rare earth minerals, which are vital for our national security and advanced manufacturing capabilities”.

Tready Smith

The Round Top Deposit hosts 15 of the 17 rare earth elements, plus other high-value tech minerals (including lithium) and is well located to serve the US internal demand. Round Top contains 13 of the 35 minerals deemed “critical” by the Department of the Interior and contains critical elements required by the United States both for national defense and industry.

USARE checks many of Bayshore’s boxes. In any company that we choose to partner with, we look for value drivers we believe in—disruptive businesses led by teams that are built with purpose. The leadership team at USA Rare Earths is driving value creation both through the science in the technology and deep political connections. We believe USA Rare Earth will be a disruptor in this space. With companies that are on the cutting edge, it is important to get in early to capture that value transfer before it becomes diluted. We believe- especially in these uncertain times- that investing in domestic companies will pay dividends for years to come, and not just in financial terms.

About Texas Minerals Resource Corp.

Texas Mineral Resources Corp.’s focus is to develop and commercialize its Round Top heavy rare earth and industrial minerals project located in Hudspeth County, Texas, 70 miles southeast of El Paso. Additionally, the Company plans on developing alternative sources of strategic minerals through the processing of coal waste and other related materials. The Company’s common stock trades on the OTCQB U.S. tier under the symbol “TMRC.”

“USA Rare Earth believes the completion of the Round Top project in Texas can represent a transformative event in the development of a critical materials supply chain in the United States. Rare Earths are essential for the US’s ability to build and sustain the advanced manufacturing capacities needed for economic and manufacturing competitiveness and military strength”.

Pini Althaus, CEO, USA Rare Earth, LLC