LITTLETON, Colo.--(BUSINESS WIRE)--Rare Element Resources Ltd. (“RER” or the “Company”) (OTCQB: REEMF) is pleased to announce it has received notice from Synchron, a current shareholder in the Company, that it will exercise its common share purchase option. Pursuant to an Option Agreement dated October 2, 2017 (the “Option Agreement”), Synchron will purchase 24,175,000 common shares for a purchase price of $5,040,000. The resulting ownership by Synchron will be approximately 49% of the outstanding common shares of the Company. The Company expects receipt of the purchase price and the issuance of shares to be completed by October 21, 2019.
Randall J. Scott, President and CEO of RER, stated, “We are very pleased to further our partnership with Synchron as it exercises its option to purchase a significant additional ownership interest in the Company. Under the Option Agreement, the option term was for four years, and we believe the early exercise is indicative of our common view that the Company and the Bear Lodge Project are well poised to become a near-term secure domestic supply of critical rare earths at a time when the market is demanding new reliable sources. Synchron has already contributed a great deal to the Company through its board representation and initial financial investment, and we believe this additional investment exemplifies its confidence in our trajectory.”
The Company is also pleased to provide an update on the previously reported pilot scale test work relating to its proprietary rare earth separation technology being conducted by Umwelt-und Ingenieurtechnik GmbH Dresden (“UIT”), an affiliate of Synchron.
UIT is currently operating a hydrometallurgical pilot plant in Germany based on ore from the Company’s Bear Lodge Project. The first phase of the pilot plant testing successfully produced a high grade, mixed rare earth oxide concentrate. UIT continues to operate the pilot plant for the separation test phase which is scheduled to be completed in the fourth quarter 2019. The separation test phase utilizes the Company’s enhanced proprietary technology to produce several products – a high-purity neodymium/praseodymium (Nd/Pr) oxide, lanthanum (La) oxide, and a mixed mid and heavy rare earth concentrate. The enhanced process, if successful, is expected to significantly reduce process steps and operating costs as well as further reduce environmental impacts and associated costs.
Synchron and its affiliated General Atomics companies are a privately held group of companies engaged in advanced research, technology, products and systems for the energy and defense sectors.
Rare Element Resources Ltd. is a publicly traded, strategic materials company focused on delivering rare earth products for technology, energy 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 electric vehicles, solar panels and wind turbines.
Please contact Randy Scott at +1 720-278-2460 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 closing of the sale of the option shares to Synchron, the expected timing and results of pilot plant test work, and the possibility of bringing the Bear Lodge Project into production. Factors that could cause actual results to differ materially include, but are not limited to, failure by Synchron to remit the applicable purchase price for the option shares, results of continued processing test work, successful exploration and permitting activities for the Bear Lodge Project, availability of sufficient capital, and other matters discussed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, and our other periodic and current reports filed with the U.S. Securities and Exchange Commission (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.