** Shares of rare earth magnet company USA Rare Earth USAR.O rise 5.8% to $32.48 premarket

** Co finalizes agreement with U.S. Commerce Department for up to $1.6 bln funding

** USAR says agreement includes up to $277 mln in grants and $1.3 bln loan capacity under CHIPS Act

** Funds to support build-out of integrated rare earth supply chain in the U.S

** Co announced last month it will receive $19.3 mln funding from Energy Department for a pilot rare earth processing project

** As of last close, USAR stock has more than doubled YTD