SIERRA BLANCA, TX--(Marketwired - Dec 10, 2014) - Texas Rare Earth Resources Corp. (OTCQX: TRER), an exploration company specializing in the heavy rare earths, is pleased to announce a record date and subscription price for its previously announced rights offering.
TRER intends to pursue a rights offering of units of TRER ("Units") for gross aggregate proceeds of up to $1.63 million. TRER has set a subscription price for the rights of $0.22 per Unit (the "Subscription Price"), with each Unit consisting of one share of the Company's common stock, one five year non-transferable Class A warrant exercisable for one share of the Company's common stock at $0.35 per share and one five year non-transferable Class B warrant exercisable for one share of the Company's common stock at $0.45 per share.
A record date of December 15, 2014 has been set for the planned rights offering. Each holder of record on the close of business on the record date will receive one right for each share of common stock of TRER held on that date. Each five (5) rights will be exercisable to acquire one Unit at the Subscription Price. The rights offering is currently contemplated to remain open until January 13, 2015, but may be extended to no later than January 31, 2015 at the discretion of TRER's board of directors.
In addition to being able to purchase their pro rata portion of the Units offered based on their ownership as of the record date for the rights offering, stockholders may oversubscribe for additional Units on an unlimited basis, subject to availability and proportional allocation of Units among holders exercising this over-subscription right.
TRER is conducting the rights offering to raise capital that will be used for the Round Top Project hydrometallurgy plan and to address its general corporate and administrative expenses.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration of qualification under the securities laws of any such state.
About Texas Rare Earth Resources Corp.
Texas Rare Earth Resources Corp.'s primary focus is exploring and, if warranted, developing its Round Top rare earth minerals project located in Hudspeth County, Texas, 85 miles east of El Paso. The Company's common stock trades on the OTCQX U.S. tier under the symbol "TRER." For more information on Texas Rare Earth Resources Corp., visit its website at www.trer.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding timing and pricing for the rights offering, amount of aggregate gross proceeds to be received pursuant to the rights offering, effectiveness of the registration statement, the anticipated use of proceeds, mineralization and resources at the Round Top project and potential development of the Round Top project and such similar statements. When used in this press release, the words "potential," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if, "anticipate," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, risks related to changes in future operating costs and working capital balance, risks related to mineral estimates, risks related to mining results not matching preliminary tests and risks related to the ability of the company to successfully monetize its non-rare earth resources, as well as those factors discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K, as filed on November 12, 2014, and other documents filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.