Harena Rare Earths (OTCQB: CRMNF) (LSE: HREE) has entered into an exclusivity agreement to evaluate the potential acquisition of Paradigm Critical Minerals Limited, a company holding rare earth and uranium exploration assets in San Bernardino County, California. The agreement allows Harena to conduct due diligence on the assets before deciding whether to proceed with a transaction.
The proposed acquisition would expand Harena’s footprint beyond its existing Ampasindava rare earth project in Madagascar and potentially position the company within the United States’ domestic critical minerals supply chain. The U.S. government has prioritised securing local sources of rare earth elements and related materials amid broader supply concerns.
Under the agreement, Harena will undertake technical, legal and commercial assessments of the Californian assets. The company stated that there is no certainty a final deal will be completed, with any transaction subject to satisfactory due diligence, internal approvals and definitive documentation.
#Californian Assets Near Established Mining Hub
San Bernardino County is a region with a long history of mining activity and established infrastructure. The area hosts thousands of mines and active claims and is considered one of California’s most developed mining districts.
The project’s proximity to the Mountain Pass mine, currently the only operating rare earth mine in North America, places it within an existing rare earth production corridor. Mountain Pass is operated by MP Materials, which has received U.S. government support to expand domestic processing capacity.
Harena said the location may offer logistical advantages, particularly as policymakers seek to strengthen domestic supply chains for critical minerals, including heavy rare earth elements.
#Historical Data Highlights Rare Earth And Uranium Potential
The target assets have previously undergone exploration, including more than 4,200 metres of drilling. Historical results identified uranium mineralisation and more recently indicated the presence of rare earth elements.
Uranium has been found in drilling over long sections, including 30 metres at moderate grades, with smaller zones of very high-grade material. More recent work at surface has also identified rare earth elements in several rock types. Both light and heavy rare earths are present in roughly equal proportions.
Sampling has returned grades of up to about 2.0% total rare earths, with readings across multiple areas showing consistent mineralisation. Higher-value heavy rare earths, including yttrium, dysprosium, and gadolinium, are present at levels that are notable compared with reported deposits.
The company said the geological characteristics show similarities to known uranium and rare earth systems in North America and Africa, though it noted that the site has not yet been evaluated using modern exploration techniques.
Allan Mulligan, Executive Technical Director of Harena, said the assets could expand the company’s exposure to critical minerals exploration and noted historical uranium grades compared with some existing operations.
Executive Chairman Ivan Murphy said the company is assessing the permits as part of its review of U.S.-based critical mineral opportunities.
#Strategic Context And Exploration Outlook
Harena’s move to assess U.S.-based assets comes as governments and industry participants seek to diversify supply sources for critical minerals used in electronics, energy systems and defence applications.
The company said further exploration work, including mapping, sampling, geophysics and drilling, would be required to determine the scale and economic viability of the project. The area remains underexplored relative to comparable deposits.
Harena’s existing Ampasindava project in Madagascar continues to be its primary development focus. The company holds a 100% interest in a JORC-compliant 699Mt ionic clay rare earth mineral resource at Ampasindava, which is being advanced as part of its broader development strategy.
In a December 2025 operational update, the company said it had entered a formal application process with the U.S. International Development Finance Corporation for potential project development financing of up to $5 million.
The exclusivity agreement with Paradigm provides Harena with a defined period to assess the potential acquisition of the Californian assets, with any transaction subject to due diligence, internal approvals and final agreement terms.