LAKEWOOD, Colo.--(BUSINESS WIRE)--Rare Element Resources Ltd. (“Rare Element” or the “Company”) (OTCQB: REEMF) is pleased to provide an update on the Company’s ongoing care-and-maintenance status and plans for the remainder of 2016. The Company continues to focus on strategically positioning the Bear Lodge Rare Earth Project such that its development can be progressed once market conditions improve as well as explore the value of its Sundance gold project resource.
Since the suspension of its permitting efforts and the implementation of cost-conservation and care-and-maintenance measures at the Bear Lodge Rare Earth Project, the Company has focused on engaging in joint venture and investment partner discussions, as well as the monetization of non-core assets during the ongoing challenging capital markets for rare earth companies. The Company continues to be listed on the OTCQB and plans to release its third quarter Form 10-Q in early November.
Cash conservation measures have included downsizing of staff and reduction of executive and director compensation and elimination of benefits, as well as eliminating the corporate office and other storage locations leases. The Company has also sold or engaged in the process of selling certain assets, including small equipment and non-core property in Wyoming, to support business operations without incurring debt. The Company has additionally postponed the timing of its 2016 Annual General Meeting until early 2017 in a further effort to reduce costs. The Company anticipates that this corporate streamlining will contribute to the sustainability of the organization until capital is obtained.
“2016 has been a transition year for Rare Element, as we have implemented measures designed to assist the Company in reaching the point where our overhead and expenses are manageable for a longer period of time while we focus our efforts on pursing strategic alternatives, including off-take agreements, asset sales, joint ventures or other partnerships that will allow the Bear Lodge Project to progress once both capital sources and market prices support its development,” said Randall J. Scott, President and Chief Executive Officer. “The world’s political dynamics and technical advancements continue to drive demand for critical rare earths and we believe, when the time is appropriate, the Bear Lodge Project will be the next U.S. domestic source of critical rare earths.”
The Company is actively engaged in discussions with multiple parties regarding the potential formation of a joint venture relationship that will allow a new partner to gain a majority interest while carrying project costs until a decision is made to further develop the Bear Lodge Project. The Board believes this type of relationship, if created, would allow the Company’s shareholders to continue to participate in the Bear Lodge Project’s rare earth production in the future.
Rare Element Resources Ltd. is a publicly traded, strategic materials company focused on delivering rare earth products for technology and defense applications by advancing the Bear Lodge Critical Rare Earth Project 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 high-strength permanent magnets, electronics, fiber optics, laser systems for health and defense, as well as many evolving technologies like hybrid cars, solar panels and wind turbines. In addition to the Bear Lodge Rare Earth Project, the Company controls the Sundance gold project which is located on the same property in Wyoming.
Please contact Randy Scott at 720-278-2460 or firstname.lastname@example.org, for additional information.
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 Company’s ability to implement cost-containment measures, the impact of such measures on the sustainability of the Company, the potential for raising capital and executing strategic transactions, including the potential of entering into a joint venture relationship and the potential ramifications and applications of its rare earth technology. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s ability to remain compliant with U.S. Securities and Exchange Commission (SEC) reporting requirements, the impact of the care-and-maintenance program on the project, market conditions, and other matters discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and our other periodic and current reports filed with the SEC and available on www.sec.gov and with the Canadian securities commissions available on www.sedar.com. 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. Any forward-looking statement made by us in this news release is based only on information currently available to us and speaks only as of the date on which it is made. While we may elect to update our forward-looking statements at any time, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.