TSX-V: RES
VANCOUVER, April 6 /PRNewswire-FirstCall/ - Rare Element
Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company")
announces that the final short form prospectus for the financing
announced on March 17, 2010 has been
filed with the securities regulatory authorities. The financing
will be for up to 2,250,000 units (the "Units") of the Company at a
price of $3.50 per Unit (the
"Offering Price"), for gross proceeds of up to $7,875,000. Each Unit is comprised of one common
share and one-half of one transferable common share purchase
warrant (a "Warrant"). Each full Warrant will entitle the holder
thereof to purchase one common share of the Company (a "Warrant
Share") for a period of 24 months from the closing of the financing
at a price of $4.75 per Warrant
Share. It is anticipated that the closing date for the financing
will be on or about April 13,
2010.
The financing is being conducted on a "best efforts" basis, and
is led by Pope & Company Limited with Jacob Securities Inc. as
a syndicate partner (collectively, the "Agents"). Global Hunter
Securities LLC is the Company's U.S. placement agent. The Agents
have the option (the "Over-Allotment Option"), exercisable at any
time until the date which is 30 days following the closing date of
the offering, to sell up to an additional 337,500 Units of the
Company at the Offering Price to cover over-allotments, if any, and
for market stabilization purposes. Rare Element has been informed
by the Agents that part, or all, of the Over-Allotment Option will
be exercised by the Agents.
The closing of the financing is subject to receipt of all
necessary regulatory approvals, including the approval of the TSX
Venture Exchange. The securities have not been and will not be
registered under 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 or to, or for
the account or benefit of, a "U.S. Person" (as defined in
Regulation S under the U.S. Securities Act) or persons 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, or to, or for the benefit or account of, a U.S.
Person or person in the United
States.
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded
mineral resource company focused on exploration and development of
rare-earth elements and gold on the Bear Lodge property. Gold
exploration in the Bear Lodge Mountains has been conducted for
several decades with several companies significantly contributing
to the database and understanding. Newmont Mining Corporation's
recent exploration efforts were the most comprehensive and
extensive of these programs.
Rare Element's Bear Lodge property encompasses one of the
largest disseminated rare-earth occurrences in North America (M H Staatz, 1983, US Geological
Survey Professional Paper 1049D). In parallel with the gold-focused
exploration project, Rare Element has completed an NI
43-101-compliant resource estimate and a Technical Report on the
Bear Lodge Rare-Earth Mineralization. The Company holds a 100%
interest in the property, is continuing with drilling and a
metallurgical testing program, and has begun a scoping study to
accomplish a preliminary engineering-economic assessment of the
rare-earth project.
ON BEHALF OF THE BOARD
Donald E Ranta, PhD, PGeo,
President & CEO
Donald E. Ranta, PhD, PGeo,
serves the Board of Directors of the Company as an internal,
technically Qualified Person. Technical information in this news
release has been reviewed by Dr. Ranta and has been prepared in
accordance with Canadian regulatory requirements that are set out
in National Instrument 43-101. This news release was prepared by
Company management, which takes 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.
SOURCE Rare Element Resources Ltd.