REalloys signs MOU with St George Mining for rare earth supply

DALLAS - REalloys Inc., the merger target of Blackboxstocks Inc. (NASDAQ:BLBX), whose stock has surged over 220% in the past year according to InvestingPro data, has signed a Memorandum of Understanding with St George Mining Limited (ASX:SGQ) to collaborate on commercializing rare earth minerals from the Araxá Project in Brazil, according to a press release statement.

The agreement will provide REalloys access to up to 40% of the rare earth production from Araxá, which is described as the largest and highest-grade carbonatite-hosted rare earths deposit in South America. For Blackboxstocks, currently valued at $24.63 million in market capitalization, this strategic move comes as the company faces challenges with profitability, according to InvestingPro analysis.

The Araxá Project contains a resource of 40.6 million tons at 4.13% total rare earth oxides, making it the second highest-grade rare earth deposit in the Western world, according to the announcement.

REalloys, which has contracts with the Defense Logistics Agency and other federal agencies, plans to use these materials for manufacturing high-purity rare earth metals and magnets for defense and commercial applications.

"This MOU is an important milestone for REalloys as we continue to secure high-grade rare earth feedstock for our U.S. operations," said Leonard Sternheim, REalloys Chairman.

John Prineas, Executive Chairman of St George Mining, noted that "the recent rare earths supply chain intervention by the U.S. Department of Defense illustrates the realignment of the global rare earths market now underway."

REalloys operates a magnet material and manufacturing facility in Euclid, Ohio, and owns the Hoidas Lake Rare Earth Elements Project in Saskatchewan, Canada. St George acquired full ownership of the Araxá Project in February 2025.

The collaboration comes as the U.S. government increases efforts to secure rare earth supply chains outside of China, positioning REalloys as a contributor to national defense and industrial supply needs. While BLBX’s stock has shown strong momentum with a 75% gain over the past six months, InvestingPro analysis suggests the company is currently overvalued, with additional insights available to subscribers including 5 more ProTips and comprehensive financial health metrics.

In other recent news, Blackboxstocks Inc. has announced a series of developments that could impact investors. The company has entered into a $5.8 million at-the-market equity agreement with Alexander Capital, allowing for the sale of shares at prevailing market prices. Additionally, Blackboxstocks amended its merger agreement with REalloys Inc. to permit an at-the-market offering of up to 250,000 shares, which will not affect the calculation of shares to be issued in the planned merger. The company also provided an update on its pending acquisition of REalloys, expected to close in late August, subject to necessary approvals. In another amendment to the merger agreement, the definition of "Permitted Transfer" in the Contingent Value Rights Agreement was revised, detailing specific scenarios for CVR transfers. Meanwhile, Teresa Wills has been appointed as the new Chief Operating Officer following Eric Pharis’s resignation, though he will remain with the company in a consulting role. These recent developments highlight Blackboxstocks’ strategic moves in mergers and leadership changes.

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