Rare Element
Closes Financing
Vancouver, BC - Rare Element Resources Ltd. 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 syndicate of Agents was co-led by Byron Securities Limited and GMP
Securities L.P., and included Jacob Securities Inc., Global Hunter Securities,
LLC (as a U.S. placement agent) and Salman Partners
Inc. The Company paid the Agents 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 any of the Company's securities set out herein 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
For information, refer to the Company's website at www.rareelementresources.com or contact:
Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity..com
Donald E Ranta, (604) 687-3520 don@rareelementresources.com
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.