The company's major shareholder Fidelity is putting in about $1.4 million to maintain its 9.9% equity stake, with other investors undisclosed.
American Rare Earth's two key projects are La Paz in Arizona and Halleck Creek in Wyoming, with the company of the belief they have the potential to be two of the largest deposits in North America.
Ongoing and planned work includes permitting, drilling and met testing.
The company also said it was looking to "secure" further projects.
American Rare Earths is led by Chris Gibbs, an executive previously involved with multiple North American resource sector companies.
Gibbs was appointed managing director of American Rare Earths late last year.
American Rare Earths has a market capitalisation of about $125 million.