TSX-V: RES
NYSE AMEX:
REE
VANCOUVER, Dec. 22
/PRNewswire-FirstCall/ - Rare Element Resources Ltd. (TSX-V: RES
and AMEX: REE) (the "Company") is pleased to announce that it
has closed its previously announced short form prospectus offering
(the "Offering"), having issued for sale 6,394,000 common shares of
the Company (the "Shares") at a price of C$9.00 per Share for gross proceeds to the
Company of C$57,546,000. The
6,394,000 Shares issued include 834,000 Shares issued and sold
pursuant to the over-allotment option granted to the Agents (as
defined below) by the Company, which was exercised in full by the
Agents. After commissions and offering expenses, the net
proceeds were approximately C$53.8
million.
The Company paid the Agents for the offering a
cash commission equal to 6% of the aggregate gross proceeds from
the Offering (including the over-allotment option) and issued to
the Agents broker warrants entitling the Agents to subscribe for
383,640 common shares of the Company at an exercise price of
C$9.00 per common share for a period
of 24 months after the Closing Date.
The net proceeds from the Offering will be used
to fund the work program at the Company's Bear Lodge rare earths
deposit in Wyoming, USA, including the completion of a
pre-feasibility study, pilot plant testing, drilling, metallurgical
work, exploration programs and for general working capital
purposes.
The Shares have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or the securities laws of any
state of the United States, and may not be offered or sold,
directly or indirectly, in the United States unless registered
under the U.S. Securities Act and applicable securities laws of any
state of the United States or in reliance on an exemption from such
registration requirements. This news release does not constitute an
offer to sell, or a solicitation of an offer to buy the common
shares in the United States.
Rare Element Resources Ltd. is a publicly traded
mineral resource company focused on exploration and development of
rare-earth elements and gold on the Bear Lodge property.
Rare-earth elements are key components of the
green energy technologies and other high-technology applications.
Some of the major applications include hybrid automobiles, plug-in
electric automobiles, advanced wind turbines, computer hard drives,
compact fluorescent light bulbs, metal alloys, additives in
ceramics and glass, petroleum cracking catalysts, and a number of
critical military applications. China currently produces more than
95% of the 130,000 metric tonnes of rare-earths consumed annually
worldwide, and China has been reducing its exports of rare earths
each year. The rare-earth market is growing rapidly, and is
projected to accelerate if the green technologies are implemented
on a broad scale.
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
This news release was prepared by Company
management, who take full responsibility for content. Neither the
TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
Forward Looking Statements
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", "has potential
to", or "intends' or by discussions of strategy or intentions. 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. Forward-looking statements are statements that are not
historical facts, and include but are not limited to, estimates and
their underlying assumptions; statements regarding plans,
objectives and expectations with respect to the effectiveness of
the Company's business model; future operations, products and
services; the impact of regulatory initiatives on the Company's
operations; the size of and opportunities related to the market for
the Company's products; general industry and macroeconomic growth
rates; expectations related to possible joint and/or strategic
ventures and statements regarding future performance.
Forward-looking statements used in this
discussion are subject to various risks and uncertainties, most of
which are difficult to predict and generally beyond the control of
the Company. If risks or uncertainties materialize, or if
underlying assumptions prove incorrect, our actual results may vary
materially from those expected, estimated or projected.
Forward-looking statements in this document are not a prediction of
future events or circumstances, and those future events or
circumstances may not occur. Given these uncertainties, users of
the information included herein, including investors and
prospective investors are cautioned not to place undue reliance on
such forward-looking statements.
SOURCE Rare Element Resources Ltd.
Copyright . 22 PR Newswire