Rare Element Resources Closes $8.0 Million Offering
LAKEWOOD, Colo.--(BUSINESS WIRE)-- Rare Element Resources Ltd. (the "Company") (NYSE MKT: REE and TSX: RES) today announced that it has closed its US$8.0 million offering of common shares and warrants in a registered direct offering in the United States resulting in net proceeds of approximately US$7.5 million, after expenses. The purchasers in the offering hold oversubscription rights for an additional US$4.0 million in common shares and warrants for 60 days. For further detail about the offering, see the press release dated September 25, 2013.
"As we move the Bear Lodge Project through permitting and towards development, activity levels continue to increase," stated Randall J. Scott, President and CEO. "The additional funds raised in this financing help support the advanced engineering, metallurgical and geologic programs necessary for detailed project design. They will also fund our permitting efforts, which will substantially pick up now that we have begun the Environmental Impact Statement process, after signing a Memorandum of Understanding with the Forest Service earlier this month. All these efforts, backed by our improved cash position, keep us on track to becoming the next North American rare earth producer."
As previously disclosed, the Company sold an aggregate of 2,677,376 common shares with 1,338,688 associated warrants at a price of $2.988 per unit. The oversubscription rights are exercisable for up to a maximum of 1,606,426 additional common shares and up to a maximum 803,213 of additional warrants, depending on the market price at the time of exercise of the oversubscription rights. Proceeds from the offering will be used to advance engineering and metallurgical work as well as permitting on the Bear Lodge Project and for general corporate purposes.
H.C. Wainwright & Co., LLC acted as exclusive placement agent in connection with the offering.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company in this offering. There shall not be any offer, solicitation of an offer to buy, or sale of securities in any state or jurisdiction in which such an offering, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offering will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.
Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths. The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project is currently underway.
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada. 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," "plans," "has potential to," or "intends," or by discussions of strategy or intentions. Such forward-looking statements include statements regarding the gross proceeds that could be raised and shares and warrants potentially issuable under the oversubscription rights; the use of proceeds of this offering; the permitting process, anticipated progress and success; project development plans for the future; and our goal to become a rare earth producer. 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. Factors that could cause actual results to differ materially include, but are not limited to, whether the election to purchase additional common shares and warrants is exercised and, if so, the purchase price for such securities; the progress of our Bear Lodge Project, fluctuations in demand for, and price of, rare earth products, and our success of process technology under testing; timing of any unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; the availability of additional capital on acceptable terms or at all; and general economic conditions. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other uncertainties and risk factors set out in our filings made from time to time with the SEC and the Canadian regulators, including, without limitation, our reports on Form 10-K and Form 10-Q. We expect that the above estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update our forward-looking information at any time, we do not undertake to update at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
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