Lebel just sent this out.
Rare Earth Metals Inc (TSX Venture: RA)
Currently:
.38
Speculative Rating: 1 (highest level of confidence)
China currently produces 97% of the world's rare earth metals, used in high-tech electronics, magnets and batteries. However, China recently cut exports of rare earth metals in order to meet booming domestic demand. There is now a huge need for companies to begin producing rare earth metals all around the world!
Rare earth exploration stocks have been exploding in recent months, because the world has a huge short fall of rare earth metals production outside of China. Avalon Rare Metals (AVL), which in November was $3, recently hit a high of $8 and at its current price has a market cap of $674 million. Rare Element Resources (REE) surged during the past year from a low of $1.15 to a high of $17.92 and at its current price has a market cap of $487 million.
RA is focused on exploring for Rare Earth Element deposits and has two advanced projects in Ontario and Newfoundland and Labrador, all exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. RA's flagship properties are the Clay-Howells Prospect and the Red Wine Project.
The Red Wine Project covers 340 square kilometres, five historic rare metal showings and two new rare earth element occurrences. RA recently reported samplings from Red Wine that included values up to 9.08% total rare earth oxides (TREO), 2.70%NbO5, 1.36%BeO, and 2.40% zirconium oxide (ZrO2).
The Clay-Howells Prospect is a massive to semi-massive magnetite deposit with appreciable Rare Earth Elements and Niobium. The deposit consists of multiple bands of mineralization with a minimum strike length of 1.0 km and hosted within a Carbonatite Complex. RA has finalized arrangements to conduct a 2000 meter diamond drilling program at its Clay-Howells project. The drill contract has been awarded to Landdrill International Ltd. of Moncton, New Brunswick, and diamond drilling equipment is expected to arrive at the Clay-Howells exploration camp located 40 kilometers north of Kapuskasing, Ontario this month.
The Clay-Howells property consists of 45 patented claims (mining and surface) and 49 unpatented claims (mining) totaling 11,781 hectares, and is underlain by a large circular 10 kilometer diameter Alkalic - Carbonatite Complex which hosts the Clay-Howells magnetite/REE/Nb Prospect and a number of untested magnetic targets. The proposed 2000 meter drill program will be carried out to test the higher priority untested magnetic targets.
RA's Clay-Howells Alkalic - Carbonatite Complexes are very unique and are the host rocks to most of the more significant REE deposits including the Bayon-Obo Mine in China, the largest rare earth producer in the world, and Molycorp (MCP)'s Mountain Pass Mine in California. MCP currently has a $4.2 billion market cap despite revenues of only $15.4 million.
RA's market cap is only $30.8 million and they have $7.3 million in cash and no debt! I consider RA to be the most undervalued rare earth play in the world today with the greatest upside potential! RA has one of the lowest market caps in the industry, when the company is financially strong with a solid balance sheet and I believe has some of the best rare earth exploration properties in the world! In my opinion, RA has the potential to become the next huge rare earth play!
RA also trades in the U.S. under the symbol RAREF.