Current Rare Earth Market and Access to Capital Create Challenges in
Continuing Process
Rare Element Resources Ltd. (the “Company”) (NYSE MKT: REE), 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 located in northeast Wyoming,
announced today that the Board of Directors (Board) has directed the
Company to continue to conserve cash due to the current difficult
markets and suspend all permitting and licensing efforts at this time,
including the EIS process.
Randy Scott, the President and Chief Executive Officer of the Company
stated, “We are happy to have finally received the draft Environmental
Impact Statement (EIS) last week, but disappointed that we cannot
continue at full speed on our permitting at this point. With the
substantial on-going costs of the permitting process to the Company and
the challenging markets for raising additional capital at this time, the
Board felt it was prudent to take this additional measure to conserve
cash. However, with the draft EIS now completed, we are at a good point
to pause until we can fully financially support our go-forward
permitting efforts.”
Mr. Scott further commented, “We are very appreciative of our widespread
support in the local communities surrounding the project and throughout
the State of Wyoming, as well as of the work by the U.S. Forest Service
and the EIS cooperators which got us to the recent publication of the
draft EIS. We know that the critical nature of the rare earths we will
produce from Bear Lodge will only increase and continue to drive
interest in moving the permitting forward when the time is right.”
The National Environmental Policy Act (NEPA) EIS process, along with the
Nuclear Regulatory Commission’s (NRC) licensing are both now on hold
temporarily, subject to further financing and the decision of the Board
to continue. The suspension also applies to the Company’s Wyoming State
mining permit and other Federal permit applications.
Mr. Scott added, “We are working to identify a partner in the near
future in order to continue to progress the permitting process and
advance the project to unlock the value of this world-class rare earth
district. We firmly believe in the critical need for a viable and secure
domestic source of those rare earth materials that are sought after in
the world’s advanced technology and defense applications. Our
proprietary processing and separation technology advancements, coupled
with the exceptional location of our Bear Lodge Project, continue to
garner favorable recognition for the project. With the proper financial
support, the team looks forward to reviving the permitting process and
further advancing this outstanding project.”
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 electronics, fiber optics,
laser systems for health and defense, as well as many evolving green
technologies, like hybrid cars, solar panels and wind turbines.
Permitting and feasibility work on the Project continues to advance. The
Company is an affiliate member of the U.S. Department of Energy’s
Critical Materials Institute, a combined government and private sector
organization committed to eliminating supply chain issues for rare
earths and other critical elements.
Please contact Paul Zink at 720-278-2460, or pzink@rareelementresources.com,
for additional information.
Forward-Looking Statements
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 resume permitting efforts or if it will resume
at all, as well as the potential for advancement toward the final
environmental impact statement (EIS) following the draft EIS and
expected timing for a final EIS and other federal, state and local
permitting and licensing. Factors that could cause actual results to
differ materially include, but are not limited to, regulatory matters;
the future price of our common shares, which will be dependent on such
matters as the progress of our Bear Lodge Project, fluctuations in
demand for, and price of, rare earth products, and the success of
process technology under testing; timing of any unexpected events at the
Bear Lodge property; delay or failure to receive government approvals
and permits; changes in U.S. securities markets; ability to raise
capital in support of the business objectives and general economic
conditions. 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 United States Securities and
Exchange Commission and the Canadian regulators, including, without
limitation, our reports on Form 10-K and Form 10-Q. We expect that the
above estimates will change as new information is received and that
actual results will vary from these estimates, possibly by material
amounts. While we may elect to update our forward-looking information at
any time, we do not undertake to update at any particular time or in
response to any particular event. Investors and others should not assume
that any forecasts in this press release represent management’s estimate
as of any date other than the date of this press release.
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