RER rejects rumor — Company says online investment claims unauthorized
Rare Element Resources says it was not involved in unauthorized online materials suggesting that a new strategic investment could be made in a company resembling RER and announced as soon as Aug. 26.
Kelli Kast, RER’s chief administrative officer, told the News Letter Journal on Aug. 25 that the company issued its Aug. 20 press release because it wanted the investing public to know “that no discussions, negotiations, or agreements with RER regarding a pending strategic investment that a research firm rumored had taken place.”
“The Company has no affiliation with, and did not authorize, those materials,” she told the NLJ. “We do not provide copies of, or further comment on, unauthorized third-party promotional materials.”
The Aug. 26 date cited in the materials coincided with RER’s previously scheduled annual general meeting of shareholders. According to Kast, the meeting was expected to cover only the ordinary business described in proxy materials filed with the Securities and Exchange Commission and distributed to shareholders, not an announcement of the type of investment suggested in the unauthorized materials.
An Aug. 28 SEC filing shows that shareholders considered three proposals at the Aug. 26 meeting: electing seven directors, ratifying the appointment of Haynie & Company as RER’s independent auditor and approving the compensation of its named executive officers on a nonbinding advisory basis. Kast told the NLJ on Aug. 30 that the Haynie & Company has been RER’s auditors for several years and is based out of Salt Lake City.
About 85.3% of outstanding shares entitled to vote were represented. The filing reported only the voting results and did not announce a new strategic investment.
Kast did not disclose whether RER is pursuing other potential financing, strategic partnerships, government support or agreements to sell future production. She said any such discussions would be subject to normal commercial confidentiality and that RER does not provide real-time commentary on potential transactions. Any material development would be disclosed through the appropriate official channels, Kast said.
Meanwhile, RER continues work on its Upton demonstration plant and Bear Lodge Project. The demonstration plant is intended to produce neodymium-praseodymium oxide and collect operating, engineering and economic data needed to evaluate a possible commercial-scale operation.
RER reported in June that it was modifying filtration equipment after workers identified inefficiencies while introducing Bear Lodge ore into the plant’s primary processing system. The company then projected that full end-to-end operations would begin in late summer.
Asked whether the modifications were complete and full processing had begun, Kast said on Aug. 20, “We are pleased with the progress toward full operations now underway.” She did not provide a completion date, operating results or information about additional costs.
RER’s projected employment is about 240 direct and indirect jobs during construction and 120 jobs during approximately 20 years of operation, according to a notice published July 29 in the Federal Register.
According to Kast, RER continues to prioritize hiring local workers and using suppliers in Weston and Crook counties as the project advances.
Ensure These Stories Are Told
Despite the challenges facing independent local journalism, what sustains us — and fills us with deep gratitude — is the loyal support of readers who believe our communities deserve accurate, trusted, and locally rooted news.
It is no exaggeration to say that we are here because of you. Every story we report, every local issue we follow, every public meeting we cover, and every community voice we lift up is made possible by readers who understand the value of an independent newspaper.
Your support does more than fund articles. It helps protect the independence that allows us to report honestly, ask important questions, and keep our community informed without fear or favor.
If you are able, please consider supporting the News Letter Journal by donating to our Unabridged Fund today. Whether your gift helps cover reporting time, printing costs, video, photography, editing, or distribution, every contribution helps keep local journalism strong in Wyoming.
All gifts are deeply appreciated. Your support helps ensure that local stories continue to be told, local decisions continue to be watched, and local voices continue to be heard.
Thank you for standing with independent community journalism.