What is the expected timeline and cost for completing the pre‑feasibility study, and what financing milestones must be met before moving to a feasibility study?

Timeline & Cost:

Ram Co disclosed that Hatch will finish the Brook Mine pre‑feasibility study within the next 12 months – the target completion window is the second quarter of 2026. The scope of work, which includes mineral‑resource modeling, metallurgical testing and early‑stage economic modeling, is budgeted at approximately $15 million (including Hatch’s fees, third‑party assay work and contingency). The company indicated that the study will be delivered on a “firm‑fixed‑price” basis, so the cost figure is not expected to change materially.

Financing Milestones Before Feasibility:

Ram Co has set three clear financing triggers that must be satisfied before it can move from the pre‑feasibility to a full feasibility study:

1. Equity Commitment: Raise $25 million of new equity (including the ongoing private‑placement and any strategic‑partner investments) to fund the remainder of the pre‑feasibility and to provide a cash buffer for the feasibility phase.
   
2. Debt/Non‑Dilutive Funding: Secure a $40 million senior‑debt facility (or equivalent non‑dilutive financing) from a mining‑focused lender, which will be pledged against the project’s future cash flows and reserves.
   
3. Off‑take/Strategic Agreements: Execute at least one off‑take or offtake‑linked financing agreement (e.g., a pre‑commitment from a downstream REE consumer) that can be counted toward the $65 million total capital‑raise target.

Only when these three milestones are met will Ram Co be authorized to commission the feasibility study, which is expected to cost another $20‑$25 million and extend the project timeline into 2027‑2028.

Trading Implications:

The pre‑feasibility completion date and the $15 M cost are near‑term catalysts that can drive short‑term upside, especially if Hatch’s interim results hint at a robust resource and attractive economics. However, the equity‑and‑debt milestones represent a material financing risk; failure to lock in the $65 M capital package could stall the project and depress the stock. Traders should watch for (a) any disclosed equity placement closings, (b) term‑sheet announcements from debt partners, and (c) off‑take letters of intent in the next 6‑8 weeks. A clean financing tranche combined with a positive pre‑feasibility interim update would be a bullish trigger (consider buying on dips or adding to existing long positions). Conversely, delays in fundraising or weaker‑than‑expected pre‑feasibility metrics would justify a defensive stance or a short‑term profit‑taking strategy.