Company Website:
http://www.rareelementresources.com
LAKEWOOD, Colo. -- (Business Wire)
Rare Element Resources Ltd. (the “Company”) (NYSE MKT: REE and TSX:
RES), a mineral resource company advancing plans to develop the Bear
Lodge Critical Rare Earth Project located in northeast Wyoming,
announced today that it has closed its $3.4 million offering of common
shares and warrants in a registered direct offering in the United States
that resulted in net proceeds, after expenses, of approximately $3.2
million. For further details about the offering, please see the
Company’s press release dated April 24, 2015. All references to “$” are
to United States dollars.
“Rich in critical rare earths and well-located in northeast Wyoming, we
believe the Bear Lodge Project is in an exceptional position to help
serve as a cornerstone for the re-establishment of a North American rare
earth supply chain,” said Paul H. Zink, Senior Vice President and Chief
Financial Officer. “This financing will help us continue our work on
permitting and certain engineering and optimization studies necessary to
support our feasibility study as well as continue our test work on
elemental separation, which offers the opportunity to move up the value
chain.”
As previously disclosed, the Company sold, to a single institutional
investor, 5,230,770 units at $0.65 per unit for gross proceeds of $3.4
million. Each unit consisted of one common share and one warrant, good
for three years, to purchase 0.5 of a common share at a purchase price
of $0.85 per share.
H.C. Wainwright & Co., LLC acted as exclusive placement agent in
connection with the offering.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of the Company in this
offering. There shall not be any offer, solicitation of an offer to buy,
or sale of securities in any state or jurisdiction in which such an
offering, solicitation, or sale would be unlawful prior to registration
or qualification under the securities laws of any such state or
jurisdiction. Any offering in the United States will be made only by
means of a prospectus, including a prospectus supplement, forming a part
of the effective registration statement.
Rare Element Resources Ltd. is a publicly traded mineral resource
company focused on exploration and development of rare-earth element
deposits, specifically those with significant distribution of critical
rare earths. The Company is advancing plans to develop the Bear Lodge
Project, located 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 electronics, fiber optics,
laser systems for health and defense, as well as many evolving green
technologies, like hybrid cars, solar panels and wind turbines.
Permitting and feasibility work on the Project continue to advance. The
Company is a member of the U.S. Department of Energy’s Critical
Materials Institute, a combined government and private sector
organization committed to eliminating supply chain issues for rare
earths and other critical elements.
For additional information, please visit the Company’s website at www.rareelementresources.com
or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.
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
completion of the offering and the use of proceeds and benefits of this
offering. Such forward-looking statements involve known and unknown
risks, uncertainties, and other factors which may cause our actual
results or achievements to be materially different from any future
results or achievements expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially
include, but are not limited to, regulatory matters; the future price of
our common shares, which will be dependent on such matters as the
progress of our Bear Lodge Project, fluctuations in demand for, and
price of, rare earth products, success of process technology under
testing, and any overhang resulting from the issuances in this offering;
timing of any unexpected events at the Bear Lodge property; delay or
failure to receive government approvals and permits; changes in U.S. and
Canadian securities markets; and general economic conditions. 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. We expect
that the above estimates will change as new information is received and
that actual results will vary from these estimates, possibly by material
amounts. While we may elect to update our forward-looking information at
any time, we do not undertake to update at any particular time or in
response to any particular event. Investors and others should not assume
that any forecasts in this press release represent management’s estimate
as of any date other than the date of this press release.
Contacts:
Rare Element Resources Ltd.
Robbin Lee, 720-278-2462
rlee@rareelementresources.com
Source: Rare Element Resources Ltd.
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