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Texas Mineral Resources Corp. is a mining company focused on the acquisition exploration and development of mineral properties. The company’s primary asset is an 18.715 percent membership interest in Round Top a limited liability company that holds two mineral property leases with the Texas General Land Office for a rare earths project in Hudspeth County Texas. Round Top also controls prospecting permits covering additional acreage adjacent to the main project. The company’s strategy is to advance a metallurgical process that can extract rare earth elements from the rhyolite host rock complete engineering work and move toward a bankable feasibility study. At present the Round Top project has not disclosed proven or probable mineral reserves under SEC guidelines.

Texas Mineral Resources Corp. does not currently generate revenue from production because the Round Top project remains in the exploration and development stage. The company may receive cash inflows if it exercises options to acquire additional interests in Round Top or if it sells part of its interest to partners. Under the agreement with USA Rare Earth LLC the company could obtain cash payments when the partner elects to increase its ownership stake. Additionally the company holds option agreements with other mining entities that could generate future revenue if those projects advance to commercial operation. Until a commercial operation is established the company relies on external funding and internal resources to cover its operating costs.

Within the rare earth elements sector Texas Mineral Resources Corp. occupies a niche position as a United States based explorer with a focus on domestic supply. The global market for rare earths is dominated by producers in China which control the majority of mining refining and manufacturing capacity. Compared with large integrated producers the company has limited financial resources technical expertise and operational scale. Its competitive advantages lie in the geographic location of the Round Top deposit in Texas the potential to provide a secure source of critical materials for defense and clean energy applications and the ownership of a substantial land package that includes prospecting permits. However the company faces significant challenges including high capital requirements for process development lengthy permitting timelines and strong competition from well financed foreign firms that can benefit from lower production costs. The company continues to seek joint venture opportunities that could provide additional funding and technical support while preserving its ownership stake in the Round Top project.

Because the company has not yet reached production it does not serve any direct customers at this time. Future customers for rare earth oxides and related materials are expected to include manufacturers of electronic devices such as smartphones and computers producers of electric vehicle batteries and wind turbine components suppliers to the defense industry and providers of advanced water treatment systems. The company may also sell to traders and refiners that specialize in critical minerals. Until a sales channel is established the customer base remains prospective rather than actual. Should the project reach commercial production the company anticipates entering into long term supply agreements with manufacturers that require consistent delivery of rare earth oxides.