VANCOUVER, Nov. 6 /PRNewswire-FirstCall/ -- Rare Element Resources Ltd (TSX-V: RES) announces that it has now completed the non-brokered private placement for $1,075,000. The offering consists of 1,075,000 units at $1.00 per unit. Each unit comprises one common share and one-half of a non-transferable share-purchase warrant. A whole warrant may be exercised to purchase one additional common share of the Company at $1.35 per share, for a period of eighteen months from the private-placement closing date.
President Dr Donald Ranta commented, "These additional funds will provide working capital for the Company's Bear Lodge, Wyoming, rare-earth exploration, and help to ensure that Rare Element is in a stronger financial position for the future. With Newmont still earning its interest in the Sundance Joint Venture, the Company has the benefit of extensive exploration work being completed at a small cost to the Company."
Dr Ranta recently returned from the Bear Lodge property, where he met with Newmont's exploration team. Dr Ranta was impressed with the detailed geological-geochemical-geophysical data being collected and the scope of the Newmont team's program. The team is enthusiastic and well qualified to explore the gold potential of the Bear Lodge alkaline intrusive complex. There has been excellent progress with the drilling program and geological work that is currently underway.
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 (REE's). The author of US Geological Survey Professional Paper 1049D stated that what is now Rare Element Resources' Bear Lodge REE property is the largest disseminated REE occurrence in North America. REE's, which have been called "catalysts for high-tech living," are required for many new technologies, including nickel-metal-hydride batteries and the motors, generators and batteries used in hybrid cars. The US market for REE's exceeds US$1 billion, with most supplied by China.
The Rare Element Resources' Bear Lodge property also has gold-exploration potential. Previous gold exploration has identified numerous gold geochemical anomalies and gold occurrences in intrusive breccia bodies. The surface geology exposes the upper levels of a mineralized alkaline intrusive complex, which is geologically similar to the igneous intrusive complex that hosts the Cripple Creek, Colorado, gold deposits.
Paso Rico (USA) Inc, a wholly owned subsidiary of Rare Element Resources, and Newmont North America Exploration Limited, a subsidiary of Newmont Mining Corporation (Newmont), have entered into a gold exploration venture, named the Sundance Joint Venture, on the Company's Bear Lodge property. Newmont has the right to earn a 65% working interest in Rare Element Resources' Bear Lodge 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.
ON BEHALF OF THE BOARD Mark T Brown CA CFO
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 prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Dr Ranta This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual future-period results to differ materially from forecasts.
CONTACT: check the Company's website at http://www.rareelementresources.com/ or contact: Donald E Ranta, President & CEO,
