VANCOUVER, Sept. 22 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company") announces that the Company has completed the $3 million financing consisting of 1 million Units. The funds will be used to provide funding for the Company's rare-earths exploration program at the Bear Lodge Project in Wyoming and for general working capital.
Each Unit was priced at $3.00 and consists of one common share and one common share purchase warrant. Each full warrant will allow the holder to purchase one additional common share for a period of 18 months from the closing date for additional consideration of $4.25. All securities are subject to a four-month hold period, expiring on January 21, 2010. There are no insiders participating in this offering and no commission is being paid.
Don Ranta, CEO & Director, commented that "the financing was completed and, more importantly, we were able to include some new groups that showed strong interest and may assist with future financings. As Rare Element grows, it is important to maintain a strong shareholder base for future funding of our expanding Bear Lodge REE project and for potential new project acquisitions."
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on gold and strategic metals such as the rare-earth elements. Rare Element and Newmont have entered into the Sundance gold exploration joint venture on the Company's Wyoming property. Newmont has the right to earn a 65% working interest in Rare Element's property, excluding any rights to the rare-earth elements and uranium but including rights to gold and other metals, by performing US$5 million in property work expenditures over a five-year period. Newmont also has the right to earn an additional 15% working interest by completing a positive project feasibility study.
Rare Element's Bear Lodge property, Wyoming, also 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 Sundance gold-focused exploration project, Rare Element has completed a NI 43-101 compliant resource estimate and a Technical Report on the Bear Lodge Rare-Earth Mineralization. Drilling programs for both rare earths and gold are being conducted currently in the Bear Lodge area.
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.
For further information: For further information: refer to the Company's website at www.rareelementresources.com or contact: Donald E Ranta, President & CEO, (604) 687-3520, firstname.lastname@example.org; Mark T. Brown, CFO, (604) 687-3520 ext. 242, email@example.com