NEWS! Grounds for Class Litigation Against Lortie & QRM BOD! Please Note: Rare Element Resources (REE), an explorer/developer of LIGHT rare earth elements, just obtained a huge infusion of new capital and, in doing so, protected its public shareholders, as per the following news:
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Rare Element Resources Ltd. (“Rare Element” or the “Company”) (REEMF) is pleased to announce that it has executed a term sheet with General Atomics Uranium Resources, LLC pursuant to which the parties plan to enter into an investment agreement by which General Atomics Uranium Resources, LLC or one or more of its affiliates (“General Atomics”) will acquire 26,650,000 common shares of the Company for US$4,752,000 in cash, or approximately US$0.18 per share, and an option to purchase an additional 24,175,000 common shares with an exercise price of approximately US$0.21 per share. The option will be exercisable immediately following issuance and will expire four years from the date of issuance. The parties expect the investment agreement and related transaction documents to be signed, and the transaction closed, no later than September 30, 2017, subject to customary conditions precedent.
Randall J. Scott, President and CEO of Rare Element, stated, “We are very pleased to have General Atomics as an investor in the Company and the Bear Lodge Rare Earth Project. With this investment, the Company plans on resuming key permitting activities and progressing the Project to be poised to be the next rare earth producer in the United States, focusing on the critical materials needed to support development of technology, green energy and defense applications.”
General Atomics is 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 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.
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If REE could find an investor to place multi-millions of dollars into the company, especially considering that its properties primarily contain the less desirable LIGHT rare earth elements, then there is absolutely NO excuse or rationale for Lortie and QRM Board of Directors to make any claim that they could not find a deep pocket investor(s) to invest equivalent (or greater) sums of monies in its own properties that allegedly consist of the much more desirable HEAVY rare earth elements.
By virtue of today's REE news, QRM shareholders have just been handed categorical empirical evidence that there is substantive demand for rare earth investment today--and any failure of Lortie and the QRM Board of Directors to secure new capital and protect the public shareholders can now be seen to be absolute evidence of corporate fraud, via fraudulent misrepresentation, via self-dealing, and via fraudulent breach of fiduciary duty to the public shareholders.
I strongly urge a deep pocket QRM shareholder(s) to step forward to spearhead and launch summary class action litigation against Lortie and the QRM Board of DIrectors, ASAP, with such class action to be initiated in the Province of Ontario, in order to inspire whistle-blowers to step forward, in order to garner the massive multi-million dollar whistle-blower awards that can be obtained in Ontario.....and, furthermore, I strongly urge QRM shareholders to contact the Government du Quebec in order to provide substantive empirical evidence that Lortie and the QRM Board of Directors, in failing to obtain new private capital investment in QRM, have allowed the Quebec taxpayers to be defrauded to the tune of multi-millions of dollars of historical investments.
Bottom line: based upon the REE press release today, the bogus allegations by Lortie and the Board of Directors that there are no considerable sources of private capital available to faciliate development of rare earth resources is a specious and fraudulent contention, and Lortie and the Board of Directors have flagrantly breached their fiduciary obligations to their public shareholders, while simultaneously defrauding the taxpayers of Quebec.