Company Website:
http://www.rareelementresources.com
LAKEWOOD, Colo. -- (Business Wire)
Rare Element Resources Ltd. (“Rare Element” or the “Company”) (OTCQB:
REEMF) is pleased to provide an update on the Company’s ongoing
care-and-maintenance status and plans for the remainder of 2016. The
Company continues to focus on strategically positioning the Bear Lodge
Rare Earth Project such that its development can be progressed once
market conditions improve as well as explore the value of its Sundance
gold project resource.
Since the suspension of its permitting efforts and the implementation of
cost-conservation and care-and-maintenance measures at the Bear Lodge
Rare Earth Project, the Company has focused on engaging in joint venture
and investment partner discussions, as well as the monetization of
non-core assets during the ongoing challenging capital markets for rare
earth companies. The Company continues to be listed on the OTCQB and
plans to release its third quarter Form 10-Q in early November.
Cash conservation measures have included downsizing of staff and
reduction of executive and director compensation and elimination of
benefits, as well as eliminating the corporate office and other storage
locations leases. The Company has also sold or engaged in the process of
selling certain assets, including small equipment and non-core property
in Wyoming, to support business operations without incurring debt. The
Company has additionally postponed the timing of its 2016 Annual General
Meeting until early 2017 in a further effort to reduce costs. The
Company anticipates that this corporate streamlining will contribute to
the sustainability of the organization until capital is obtained.
“2016 has been a transition year for Rare Element, as we have
implemented measures designed to assist the Company in reaching the
point where our overhead and expenses are manageable for a longer period
of time while we focus our efforts on pursing strategic alternatives,
including off-take agreements, asset sales, joint ventures or other
partnerships that will allow the Bear Lodge Project to progress once
both capital sources and market prices support its development,” said
Randall J. Scott, President and Chief Executive Officer. “The world’s
political dynamics and technical advancements continue to drive demand
for critical rare earths and we believe, when the time is appropriate,
the Bear Lodge Project will be the next U.S. domestic source of critical
rare earths.”
The Company is actively engaged in discussions with multiple parties
regarding the potential formation of a joint venture relationship that
will allow a new partner to gain a majority interest while carrying
project costs until a decision is made to further develop the Bear Lodge
Project. The Board believes this type of relationship, if created, would
allow the Company’s shareholders to continue to participate in the Bear
Lodge Project’s rare earth production in the future.
Rare Element Resources Ltd. is a publicly traded, strategic
materials company focused on delivering rare earth products for
technology and defense applications by advancing the Bear Lodge Critical
Rare Earth Project in northeast Wyoming. Bear Lodge is a significant
mineralized district containing many of the less common, more valuable,
critical rare earths that are essential for high-strength permanent
magnets, electronics, fiber optics, laser systems for health and
defense, as well as many evolving technologies like hybrid cars, solar
panels and wind turbines. In addition to the Bear Lodge Rare Earth
Project, the Company controls the Sundance gold project which is located
on the same property in Wyoming.
Please contact Randy Scott at 720-278-2460 or rscott@rareelementresources.com,
for additional information.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
usually identified by our use of certain terminology, including “will,”
“believes,” “may,” “expects,” “should,” “seeks,” “anticipates,” “plans,”
“has potential to,” or “intends,” or by discussions of strategy or
intentions. Such forward-looking statements include statements regarding
the Company’s ability to implement cost-containment measures, the impact
of such measures on the sustainability of the Company, the potential for
raising capital and executing strategic transactions, including the
potential of entering into a joint venture relationship and the
potential ramifications and applications of its rare earth technology.
Factors that could cause actual results to differ materially include,
but are not limited to, the Company’s ability to remain compliant with
U.S. Securities and Exchange Commission (SEC) reporting requirements,
the impact of the care-and-maintenance program on the project, market
conditions, and other matters discussed under the caption “Risk Factors”
in our Annual Report on Form 10-K for the fiscal year ended December 31,
2015, and our other periodic and current reports filed with the SEC and
available on www.sec.gov
and with the Canadian securities commissions available on www.sedar.com.
There can be no assurance that future developments affecting the Company
will be those anticipated by management. Please refer to the discussion
of these and other uncertainties and risk factors set out in our filings
made from time to time with the SEC and the Canadian regulators,
including, without limitation, our reports on Form 10-K and Form 10-Q.
Any forward-looking statement made by us in this news release is based
only on information currently available to us and speaks only as of the
date on which it is made. While we may elect to update our
forward-looking statements at any time, we undertake no obligation to
publicly update any forward-looking statement, whether written or oral,
that may be made from time to time, whether as a result of new
information, future developments or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160929005148/en/
Contacts:
Rare Element Resources Ltd.
Randy Scott, 720-278-2460
rscott@rareelementresources.com
Source: Rare Element Resources Ltd.
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