EDITOR: | January 22nd, 2016 | 6 Comments

Rare Element Resources Announces Suspension of Permitting Activities

| January 22, 2016 | 6 Comments

Rare-Element-Resources-200x125January 22, 2016 (Source) — 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.

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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  • Aat Oskam

    And another Ree prospect (almost) bites the dust, bad thing for their shareholders.

    January 22, 2016 - 1:06 PM

  • asrms

    I agree, but equally bad for rare materials (potential) investors in general. First it was Rare Earths with its boom to bust to going nowhere history. The flagship Molycorp desintegrates and Lynas continues its battle just to survive. Those that remain on paper shutter up or just talk. Now we have the articles on the next great hope – Lithium!

    I think that investors are now very wary of the companies that rocket up ‘on news’ along with the multicolored presentations showing how much materal is in their ground, what this is predicted to be worth, who might be financing or buying or says they will be buying.

    I think many small time investors are going to be sat out of these rare material areas for a long time (possibly several years). At least till we clearly see what the real need is going to be, who is actually buying and who is actually financed and producing product for them.

    Willl you miss the bottom of the sp – yes! but will you actually make some money – probably yes and with much less stress!. JMO

    January 23, 2016 - 2:31 PM

  • Tim Ainsworth

    Watch China, still haven’t had H1 production quotas as yet.

    Referencing IMCOA data, very clearly LRE quota is massively lower than demand, creating the need for “illegals”, by the same token the HRE is well in excess of demand.

    Simplest way to eliminate a huge chunk of “illegals” is to lift the LRE quota and bring it onto the books, and into the tax system.

    Good chance we’ll see an increase in concentrate tax, a more practical implementation, with associated effort at tracking, plus further consolidation in the 10% outside the Big 6 and possibly Southern HRE producers, who are hemorrhaging badly ATM.

    Such action might indicate an inflection point, as per:

    ‘“The dominance of China in rare earths was unsustainable,” Curtis, chief executive officer of Lynas, said in an interview. “I’d pictured the need for order in the industry, that these were important metals that would ultimately need a stable, secure non-China supply chain,” Curtis said.
    His decision to invest in rare earths was informed by experience with China’s aluminum industry, where mushrooming construction of smelters led to power shortages followed by a government clampdown and industry regulation.
    “The reform process in China in the metals sector goes through a period of unfettered competition leading to chaos followed by which the state tries to get control of things again,” Curtis said.’

    January 24, 2016 - 2:25 AM

  • Bill

    China still looks pretty dominant to me:-

    China Rare Earth Exports Swell in December 2015 as Prices Hit Bottom

    SHANGHAI, Jan. 20 (SMM) – China’s rare earth exports hit the highest for 2015 in December as when prices hit a bottom.

    Customs data showed China exported 4,838 tonnes of rare earth in December 2015, up 66.7% year-on-year and 49.3% month-on-month.



    As for quoting Nick Curtis, didn’t he sell all his shares in Lynas for around $2 per share and leave. If there was such a great future wouldn’t Curtis have stuck around and not sold ?

    January 25, 2016 - 5:04 AM

  • Tracy Weslosky

    I have a call into REE for an interview. Let’s assume nothing other than another company has elected to reduce additional compliance fees…send me your questions, I will ask them: thanks.

    January 25, 2016 - 8:37 AM

  • Hannibal

    Thank you Tracy, you’re an angel. As probably one of the largest shareholders in REE I certainly look forward to your interview with company officials. And again, thank you for Investor Intel and the valuable service it provides.

    January 26, 2016 - 7:35 AM

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