Company to proceed with rare earth demonstration plant

By: 
Wyoming News Exchange

Company to proceed with rare earth demonstration plant

 

SUNDANCE (WNE) — Rare Element Resources (RER) has finally received the $21.9 million funding promised by the U.S. Department of Energy. The company announced last week that its next goal is to construct a demonstration plant in Upton that will process and separate rare earth elements from ore that was previously stockpiled at the Bear Lodge Project in Crook County.

“The award represents approximately 50% of the total estimated project costs. Securing the remainder of the funds is the responsibility of Rare Element Resources,” says George Byers, RER.

To raise this money, the company intends to launch a $25 million rights offering of common shares. As of the close of business on October 19, each holder of RER common shares will be issued one non-transferable subscription right for each common share they own.

Each subscription right will entitle the holder to purchase one common share of the company at 24 cents per share. The rights offering will also include an oversubscription privilege, which entitles shareholders who exercise all of their subscription rights to purchase additional common shares subject to availability.

According to the press release, “The Company plans to use the net proceeds from the rights offering for the permitting, licensing, engineering, construction and operation of a rare earth separation and processing demonstration plant near the Company’s Bear Lodge Project and other general corporate purposes.”

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