LITTLETON, Colo.--(BUSINESS WIRE)--Rare Element Resources Ltd. (“Rare Element” or the “Company”) (OTCQB: 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.
