Blackboxstocks Inc. Merger Target REalloys Enters into Historic Partnership with the SRC to Establish North America's First Commercial-Scale Heavy Rare Earth Production
Partnership advances the continent's first fully funded and permitted heavy rare earth refining pathway, delivering first to market production for allied supply chains
Meets all Title 50 defense-sourcing requirements under U.S Code — with zero Chinese / non-allied nexus
Commercial production expected in early 2027, strengthening North American and allied supply chains amid intensifying global competition
DALLAS, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Blackboxstocks Inc. (NASDAQ:BLBX), ("Blackbox" or the "Company"), is pleased to announce that its merger target, REalloys Inc. ("REA" or "REalloys"), has entered into a historic partnership with the Saskatchewan Research Council ("SRC"), anchored by a commercial processing and long-term offtake agreement to expand the heavy rare earth refining capability at SRC's Rare Earth Processing Facility in Saskatoon, SK. Under the partnership, REalloys has secured 80% of annual production of the upgraded capacity from the facility1 enabling a compliant, North American supply chain for the Company's defense industrial base clients, including the U.S. Department of Defense.
The agreements reestablish North America's midstream rare earth capability and reposition SRC's facility — now nearing completion — as the continent's first fully integrated, commercial-scale rare earth processing and metals facility. Equipped with monazite processing, AI-controlled rare earth element ("REEs") separation, and advanced metal-smelting systems, the facility anchors a supply chain previously available only in China and is dedicated to the extraction and refining of heavy rare earth elements ("REEs") including Dysprosium (Dy), Terbium (Tb), and Neodymium-Praseodymium (NdPr). The facility will be fully operational for heavy rare earth production in early 2027.
Production Capacity and Expansion
Under the agreements, REalloys will invest approximately US$21 million to expand SRC's facility, increasing its heavy rare earth (Dy and Tb) processing capacity by an estimated 300% and boosting its light rare earth (NdPr) capacity by 50%. Once fully operational in early 2027, the expanded facility is designed to produce up to 30 tonnes of Dy oxide, 15 tonnes of Tb oxide, and 400 tonnes per year of high-purity NdPr metal, with NdPr output increasing to 600 tonnes per year after the expansion is complete.
REalloys has secured the majority of this output under the long-term offtake agreement from SRC under a cost-plus model.
This facility expansion positions REalloys to deliver a secure, North American supply of these mission-critical materials just as new U.S. defense procurement rules take effect on January 1, 2027. Under 10 U.S.C. §4872 and DFARS 252.225-7052, the U.S. Department of Defense will be prohibited from sourcing rare earth metals, magnets, or components from China, Russia, Iran, or North Korea — ensuring American national security relies on trusted, domestic and allied partners.
Under Title 50, the framework governing U.S. defense and national-security sourcing, the United States now requires critical materials to originate from trusted domestic or allied producers. The REalloys–SRC partnership answers that requirement directly, establishing North America's first commercial-scale, zero-China nexus, heavy rare earths supply chain.
REA Commercial Facility
SRC's facility will serve as the precursor to REalloys' planned Commercial Facility in Saskatoon, SK, designed for annual output of approximately 200 tonnes of Dy metal, 85 tonnes of Tb metal, and 2,700 tonnes of NdPr metal. Together, these developments position REalloys as a central contributor to North America's secure supply of high-performance magnet materials essential to defense, clean energy, and advanced manufacturing.
"North America currently has no commercial-scale heavy rare earth refining or metallization capacity, and most announced projects remain in pilot or early-construction stages with financing, permitting, and technology-scaling risk," said Leonard Sternheim, CEO of REalloys. "SRC's facility expansion changes that — establishing the first fully funded and permitted heavy rare earth facility in the region with zero Chinese nexus. Built on years of proprietary process IP and AI-driven systems integration, the facility provides a near-term pathway to domestic heavy rare earth production and a resilient allied supply chain."
"At SRC, we've spent years building the technical foundation to make this possible," said Mike Crabtree, President and CEO of the Saskatchewan Research Council. "Our team's expertise in metallurgy, process chemistry, and systems integration is world-class, and this partnership proves that Canada can execute at commercial scale. It's a demonstration of what disciplined innovation looks like—combining science, engineering, and purpose to secure the materials that underpin modern industry."
"This partnership reflects the kind of strategic collaboration Canada should be pursuing in the current global environment," said Ambassador David MacNaughton, Canada's former Ambassador to the United States during the first Trump administration. "With U.S. procurement governed by Title 50 and new impending restrictions on sourcing from non-allied nations, it makes sense for Canada to strengthen its industrial base within a shared North American framework. Canada and the US have a long history of collaboration when it comes to defense readiness and supply security. By expanding this capability in Saskatchewan, Canada is reinforcing a continental partnership that ensures both nations can meet their obligations with trusted, domestic materials."
"This historic agreement confirms that companies around the world recognize the value of doing business in Saskatchewan and reinforces our province's growing position as a world-leading rare earth hub," said Saskatchewan Minister Responsible for SRC Warren Kaeding. "The Government of Saskatchewan remains committed to advancing critical minerals development, attracting private-sector investment, and strengthening North American supply chain independence in this globally strategic sector."
About REAlloys Inc.
REAlloys Inc. ("REA") is advancing a fully integrated North American mine-to-magnet supply chain encompassing upstream resource development, midstream processing, and downstream manufacturing. The company's upstream foundation includes its Hoidas Lake rare-earth asset in Saskatchewan and a diversified network of allied feedstock and recycling partners. Together with the Saskatchewan Research Council ("SRC"), REAlloys is building a platform to scale North American midstream separation, refining, and metallization capabilities—creating a coordinated system that processes and converts rare-earth materials from allied and domestic sources into high-purity products. Those refined materials feed directly into REAlloys' downstream manufacturing operations in Euclid, Ohio, where the company produces advanced alloys and magnet components for defense, clean-energy, and high-performance industrial applications.
About the Saskatchewan Research Council (SRC)
SRC is Canada's second largest research and technology organization. As a catalyst for innovation, SRC focuses on providing leading-edge services and solutions to the agriculture, energy, environment and mining industries with major projects in nuclear and rare earth elements. With a workforce of more than 400 employees and nearly 80 years of applied research and development experience, SRC supports 1,400 clients in more than 15 countries. For more information, visit www.src.sk.ca.
About Blackboxstocks Inc.
Blackboxstocks Inc. (NASDAQ:BLBX) is a financial technology and social media hybrid platform offering real time proprietary analytics and news for stock and options traders of all levels. Its web based software employs predictive technology enhanced by artificial intelligence to find volatility and unusual market activity that may result in rapid price movement. Blackbox continuously scans the NASDAQ, New York Stock Exchange, CBOE, and all other options markets, analyzing over 10,000 stocks and up to 1,500,000 options contracts multiple times per second. The platform provides a fully interactive social media environment integrated into its dashboard, enabling users to exchange information and ideas quickly and efficiently through a common network. Blackbox has also introduced a live audio and screenshare feature that allows members to broadcast on their own channels to share trading strategies and market insight within the community. Blackbox is a SaaS company with a growing user base spanning more than 40 countries.
Contacts
Blackboxstocks Inc.
[email protected]
PCG Advisory
Jeff Ramson
(646) 863-6893
[email protected]
REAlloys Inc.
Angela Gorman
Communications, REAlloys
[email protected]
www.realloys.com
Safe Harbor Clause and Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws, including the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding development activities, project milestones, expected capacity, market expansion, financing, timing, strategic initiatives, regulatory approvals, or future performance are forward-looking statements. Such statements reflect management's current expectations, assumptions, and estimates and are inherently subject to significant risks and uncertainties, many of which are beyond the control of the Company. Words such as "anticipate," "believe," "expect," "intend," "may," "plan," "potential," "project," "should," "target," "will," and similar expressions are intended to identify forward-looking statements, though their absence does not mean a statement is not forward-looking.
These statements are not guarantees of performance or outcomes. Actual results may differ materially from those expressed or implied due to various factors, including but not limited to: the ability to successfully complete project development and commercialization efforts; uncertainties related to scaling new technologies or processes to industrial production; supply-chain reliability, logistics, and availability of equipment and materials; fluctuations in rare-earth prices or demand; changes in market conditions, customer preferences, or procurement policies; regulatory approvals, environmental compliance, and permitting delays; inflationary pressures or rising capital costs; the availability, cost, and terms of financing; geopolitical events and trade policies affecting critical minerals; the outcome of future collaborations or partnerships; workforce recruitment and retention; cybersecurity or intellectual-property risks; competitive developments or technological change; and macroeconomic or industry-specific conditions that could impact operations, markets, or valuations.
Forward-looking statements also include expectations regarding the anticipated merger between Blackboxstocks Inc. and REAlloys Inc., including the timing, completion, integration, synergies, and potential benefits of the proposed transaction. These are subject to numerous risks and uncertainties, including the satisfaction of closing conditions, receipt of necessary approvals, potential delays, litigation, regulatory review, or changes in transaction structure. There can be no assurance that the merger or any related initiatives will occur on the expected timeline, terms, or at all, or that anticipated synergies will be realized.
All forward-looking statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events, new information, or changes in expectations, except as required by law. Readers are cautioned not to place undue reliance on these statements, which are provided for the purpose of describing management's current expectations and strategic outlook, and which involve numerous known and unknown risks, uncertainties, and other factors that may cause actual results or performance to differ materially.
These statements should not be construed as forecasts or guarantees of future outcomes. The risks and uncertainties that could affect the Company's operations, financial condition, performance, and prospects include those described in its filings with the Securities and Exchange Commission, including the most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other periodic reports available at www.sec.gov.
Disclosure Information
Blackboxstocks uses and intends to continue using its Investor website at https://blackboxstocks.com/company-overview as a means of disclosing material nonpublic information and for complying with Regulation FD. Investors should monitor this site, along with the company's press releases, SEC filings, public conference calls, and webcasts.
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1 REA shall receive 100% of the first one third annual production each year, and 70% of the balance of annual production, with a ROFR to acquire any remaining uncontracted amounts at the beginning of each year.
