TSX-V: RES
NYSE AMEX: REE
VANCOUVER,
Dec. 14 /PRNewswire/ - Rare
Element Resources Ltd. (TSX-V: RES and AMEX: REE) (the
"Company") is pleased to announce that it has obtained a
receipt for its final short form prospectus filed with the
securities regulatory authorities in each of the provinces of
Canada, except Québec, and has
entered into an agency agreement with a syndicate of agents
(collectively, the "Agents") for its previously announced
"best efforts" public offering (the "Offering") of up to
5,560,000 common shares of the Company (the "Shares") at an
issue price of C$9.00 per Share (the
"Issue Price"). The Offering will raise aggregate
gross proceeds to the Company of up to C$50,040,000. The Agents also have the option to
purchase from the Company up to 834,000 additional Shares at the
Issue Price exercisable for a period of 30 days from the Closing
Date (as defined herein) (the "Over-Allotment
Option").
Mark T. Brown,
CFO & Director commented that "Rare Element has spent the past
three weeks meeting with important investors in many locations.
This is an important step in continuing the growth of the Company
and ensuring that shareholders are well informed about our plans to
become a rare earth oxide producer. The Agents have done an
excellent job of introducing the Company to new institutional
investors and we are very pleased with the positive response."
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 Company has agreed to pay to the Agents a
cash commission equal to 6% of the aggregate gross proceeds from
the Offering (including the Over-Allotment Option). As additional
consideration for the services of the Agents, the Company shall
also issue to the Agents broker warrants (the "Broker
Warrants") entitling the Agents to subscribe for that number of
Shares as is equal to 6% of the total number of Shares sold
pursuant to the Offering, including the Over-Allotment Option.
Subject to regulatory approval, each Broker Warrant will be
exercisable to acquire one Share at a price equal to the Issue
Price for a period of 24 months after the Closing Date.
The Offering is expected to close on or about
December 22, 2010 (the "Closing
Date"), subject to customary closing conditions. The Company
has received conditional approval to list the Shares distributed
under the Offering on the TSX Venture Exchange and has applied to
list the Shares on the NYSE Amex.
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.
During the review process, the Company received
comments from the British Columbia Securities Commission on various
documents and has re-filed its preliminary economic assessment,
financial statements for the first quarter ended September 30, 2010, and it's management's
discussion and analysis for the same period with minor
corrections.
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 . 14 PR Newswire