- Over-allotment exercised due to demand
- Rare Element now funded for the next two years
- 32,117,737 common shares issued and outstanding
- Amex listing application filed
TSX-V: RES
VANCOUVER, April 13 /PRNewswire-FirstCall/ - Rare Element
Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company")
announces that the $7.8 million
financing announced on March 17, 2010
has been fully subscribed, and part of the Over-Allotment Option
has been exercised by the Agents. The financing was for a total of
2,531,501 units (the "Units") of the Company at a price of
$3.50 per Unit (the "Offering
Price"), for gross proceeds of $8,860,253. Each Unit is comprised of one common
share and one-half of one transferable common share purchase
warrant (a "Warrant"). Each full Warrant entitles the holder
thereof to purchase one common share of the Company (a "Warrant
Share") until April 13, 2012, at a
price of $4.75 per Warrant Share.
The proceeds of the financing will be used for the following key
items in advancing the Bear Lodge Rare Earth Element deposit, and
general corporate purposes:
- Completion of an updated NI 43-101 compliant REE resources report
- Continued metallurgical test work to advance the process for REE
recovery
- Completion of the scoping study currently underway
- An expanded REE drill program to begin in the summer.
- Other plans to advance the project subject to successful completion of
the items listed above.
The Company paid $531,615 cash
commission (6% of the gross proceeds of the Offering) to the Agents
and issued 151,890 Agents' Warrants (6% of the number of Units
sold) for their services in connection with the Offering. Each
Agents' Warrant entitles the holder thereof to purchase one Unit at
the Offering Price at any time up to April
13, 2012.
The Units were offered for sale in each of the Provinces of
Alberta, British Columbia and Ontario and on a private placement basis in
the United States pursuant to
exemptions from the registration requirements of the U.S.
Securities Act of 1933, as amended (the "U.S. Securities Act"), and
in accordance with the applicable securities laws of any state of
the United States.
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.
Amex application filed
Rare Element has also submitted its application to the NYSE
American Stock Exchange ("AMEX"). The Company expects to continue
to work on the documentation required by AMEX over the next month
in order to ensure that all of the initial listing requirements are
met.
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.