Rare
Element Receives $5.8 Million and Implements a Shareholder Rights Plan
Vancouver B.C. - Rare Element Resources Ltd. (TSX-V: RES and NYSE-Amex:
REE) (the "Company" or "Rare Element") received an
additional $5,842,210 from the exercise of stock options, warrants and
agent's options between July 1, 2010 and October 31, 2010.
Rare Element currently has 34,840,965 common shares issued and outstanding, and 39,327,823 common shares outstanding on a
fully diluted basis. Rare Element has approximately $12.6 million in cash and
no debt as of October 31, 2010.
Rare Element now has 4,486,858 "in-the-money" warrants and options
outstanding which, if exercised, will contribute an additional $11.6 million
to the Company.
Location of Annual
General and Special Meeting to be held on December 13, 2010 and Shareholder
Rights Plan
The annual general and special meeting of the Company's shareholders will be
held on Monday, December 13, 2010 at 10:00 a.m. (Pacific Standard Time) at
the Vancouver Club, located at 915 West Hastings Street, Vancouver, BC, Canada.
Shareholders of record as at the close of business on October 28, 2010 are
entitled to notice of, and to vote at, the meeting.
The Board of Directors proposed to add a Shareholder Rights Plan agreement
(the "Plan") and the Plan, subject to regulatory approval, will be
put to a shareholder vote at the upcoming shareholder meeting.
The purpose of this Plan is to ensure the fair treatment of all Rare Element
shareholders in connection with any possible future takeover bids for the
outstanding common shares of the Company. It also allows the Board and the
shareholders adequate time to properly evaluate and assess a takeover bid
without facing undue pressure or coercion. The Plan is similar to the plans
adopted by other Canadian companies and a copy of the Plan will be filed on
SEDAR.
The Plan has not been adopted in response to, or in contemplation of, any
specific proposal to acquire control of Rare Element. The Plan provides the
Board with additional time to consider any takeover bid and, if applicable, to
explore alternative transactions in order to maximize shareholder value. The
Plan is not designed to prevent takeover bids that treat Rare Element
shareholders fairly. Pursuant to the terms of the Plan, any bids that meet
certain criteria intended to protect the interest of all shareholders are
deemed to be permitted bids. A permitted bid must be made by way of as
takeover bid circular prepared in compliance with applicable securities laws
and, in addition to certain conditions, must remain open for 60 days. In the
event a takeover bid does not meet the permitted bid requirements of the
Plan, the rights issued under the Plan will entitle shareholders, other than
any shareholder or shareholders involved in the takeover bid, to purchase
additional common shares of Rare Element at a significant discount to the
market price of the common shares at that time.
Rare Element Resources Ltd (TSX-V: RES & NYSE-Amex: REE) 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 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.
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