Rare Element Resources Announces Results of Oversubscribed Rights Offering of Common Shares

Article content material

LITTLETON, Colo. — Uncommon Ingredient Assets Ltd. (the “Firm” or “RER”) (OTCQB: REEMF) is happy to report that its beforehand introduced rights providing of frequent shares was oversubscribed and generated roughly US$25.4 million in gross proceeds.

As a result of the rights providing, which expired on December 8, 2021, was oversubscribed, the shares accessible for issuance can be allotted proportionately amongst shareholders who exercised their oversubscription privileges primarily based on the variety of shares every shareholder subscribed for beneath its primary subscription privilege. Any extra subscription funds acquired by the subscription agent can be returned by the subscription agent to traders, with out curiosity or deduction.

Article content material

Preliminary outcomes point out that, pursuant to the rights providing, the Firm can be issuing roughly 105.8 million frequent shares (together with roughly 85.0 million frequent shares to be issued to holders who exercised their primary subscription privilege) at US$0.24 per share. Of the overall shares to be issued, roughly 65.5 million frequent shares are anticipated to be issued to the Firm’s vital shareholder, Synchron, which exercised its primary subscription and oversubscription privileges in full. The Firm will successfully be issuing the entire frequent shares that had been accessible for subscription beneath the rights providing. It’s anticipated that the brand new frequent shares can be issued by December 16, 2021. Following the issuance of latest frequent shares pursuant to the rights providing, it’s anticipated that Synchron will personal roughly 54.8% of the frequent shares excellent.

Internet proceeds from the providing, after deducting estimated charges and bills, are anticipated to be roughly US$25.1 million. The Firm plans to make use of the online proceeds for the allowing, licensing, engineering, development and operation of a uncommon earth separation and processing demonstration plant close to the Firm’s Bear Lodge Mission and different common company functions, with a portion for use for the prepayment of excellent indebtedness of roughly US$1 million. The beforehand introduced US$21.9 million monetary award from the U.S. Division of Power (“DoE”) will fund roughly one-half of the anticipated whole price of the demonstration plant, with the steadiness of the required funding being supplied by the Firm.

In america, the rights providing was made pursuant to the shelf registration assertion on Kind S-3 that was beforehand filed with the U.S. Securities and Trade Fee (the “SEC”) and the prospectus complement and accompanying prospectus assembly the necessities of the Securities Act of 1933, as amended, which had been filed with the SEC as a part of the shelf registration assertion. In Canada, the rights providing was made on a non-public placement foundation that was exempt from the prospectus necessities of relevant Canadian securities legal guidelines.

The outcomes of the rights providing are topic to finalization and verification by the subscription agent. This information launch shall not represent a suggestion to promote or the solicitation of a suggestion to purchase any securities, nor shall there be any provide, solicitation or sale of securities in any state or jurisdiction during which such provide, solicitation or sale can be illegal previous to registration or qualification beneath the securities legal guidelines of any such state or jurisdiction.

Article content material

Uncommon Ingredient Assets Ltd. is a publicly traded, strategic supplies firm targeted on delivering uncommon earth merchandise for expertise, vitality and protection functions by advancing the Bear Lodge Crucial Uncommon Earth Mission in northeast Wyoming. Bear Lodge is a big mineralized district containing lots of the much less frequent, extra helpful, essential uncommon earths which are important for high-strength everlasting magnets, electronics, fiber optics, laser techniques for well being and protection, in addition to many applied sciences like electrical automobiles, photo voltaic panels and wind generators.

Ahead-Wanting Statements

This information launch accommodates forward-looking statements inside the which means of securities laws in america and forward-looking info inside the which means of securities laws in Canada (collectively, “forward-looking statements”). Aside from statements of historic reality, sure info contained herein constitutes forward-looking statements. Ahead-looking statements are normally recognized by our use of sure terminology, together with “will,” “believes,” “could,” “expects,” “ought to,” “seeks,” “anticipates,” “plans,” “has potential to,” or “intends” (together with destructive and grammatical variations thereof), or by discussions of technique or intentions. Such forward-looking statements embrace statements concerning the rights providing, the anticipated proceeds from the rights providing, the variety of shares to be issued within the rights providing and the anticipated timing for such issuance, Synchron’s anticipated possession share of the excellent frequent shares and the anticipated use of proceeds from the rights providing. Elements that would trigger precise outcomes to vary materially embrace, however are usually not restricted to, the finalization and verification of the rights providing outcomes by the subscription agent, the flexibility to acquire demonstration plant licensing, profitable additional allowing actions for the Bear Lodge Mission, the provision of ample capital for the long run growth and operations of the Firm, and different issues mentioned beneath the caption “Threat Elements” in our Annual Report on Kind 10-Okay for the fiscal 12 months ended December 31, 2020, and our different periodic and present stories filed with the SEC and accessible on www.sec.gov and with the Canadian securities commissions accessible on www.sedar.com . There might be no assurance that future developments affecting the Firm can be these anticipated by administration. Please seek advice from the dialogue of those and different uncertainties and danger components set out in our filings made every so often with the SEC and the Canadian regulators, together with, with out limitation, our stories on Kind 10-Okay and Kind 10-Q. Any forward-looking assertion made by us on this information launch relies solely on info at the moment accessible to us and speaks solely as of the date on which it’s made. Whereas we could elect to replace our forward-looking statements at any time, we undertake no obligation to publicly replace any forward-looking assertion, whether or not written or oral, that could be made every so often, whether or not on account of new info, future developments or in any other case.

View supply model on businesswire.com: https://www.businesswire.com/information/house/20211210005577/en/

Contacts

Randy Scott
+1 720-278-2460
rscott@rareelementresources.com

#distro