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ITEM 1A. RISK FACTORS
The following sets forth certain risks and uncertainties that could have a material adverse effect on our business,
financial condition and/or results of operations and the trading price of our common shares, which may decline, and
investors may lose all or part of their investment. Additional risks and uncertainties that we do not presently know or
that we currently deem immaterial also may impair our business operations. We cannot assure you that we will
successfully address these risks.
We have a history of losses and will require additional financing to fund our current activities and, if warranted,
future development and production efforts. Failure to obtain additional financing could have a material adverse
effect on our financial condition and results of operation and could cast uncertainty on our ability to continue as
a going concern.
For the year ended December 31, 2014, our net loss was $14.0 million. Our accumulated deficit at December 31,
2014 was $113.5 million. At December 31, 2014, our cash position was $10.1 million, and our working capital
position was $9.2 million. We have no revenues from operations, and we anticipate we will have no operating
revenues until we place the Bear Lodge REE Project into production.
We do not have sufficient funds to complete feasibility studies, permitting, development and construction of the
Bear Lodge REE Project. We will be required to raise additional funding through equity sales, asset sales in the
form of joint venture relationships, debt instruments and/or alternative means of funding. Failure to obtain sufficient
financing may result in the delay or indefinite postponement of feasibility studies, process test work, development
and/or production at our Bear Lodge REE Project. We cannot be certain that additional capital or other types of
financing will be available if needed or that, if available, the terms of such financing will be favorable or acceptable
to us. Future financings may cause dilution to our shareholders. Our ability to arrange additional financing will
depend, in part, on the prevailing capital market conditions as well as our business performance and the economic
attractiveness of our Bear Lodge REE Project.
We have no history of producing mineral products from our properties. Any future revenues and profits are
uncertain.
We have no history of mining or refining any mineral products, and our Bear Lodge REE Project is not currently
producing. There can be no assurance that the Bear Lodge REE Project, or any properties that we may acquire in the
future, will be successfully developed, placed into production, produce minerals in commercial quantities or
otherwise generate operating earnings. Advancing properties from the exploration stage into development and
commercial production requires significant capital and time and will be subject to further feasibility studies,
permitting requirements and construction of the mine, processing plants, roads and related works and infrastructure.
We will continue to incur losses until our mining activities successfully reach commercial production levels and
generate sufficient revenue to fund continuing operations. There is no certainty that we will produce revenue from
any source, operate profitably or provide a return on investment in the future. If we are unable to generate revenues
or profits, our shareholders might not be able to realize returns on their investment in our common shares.
The planned development of our Bear Lodge REE Project involves numerous uncertainties that could affect the
feasibility or profitability of such project.
Mine development projects typically require a number of years and significant expenditures during the exploration
and development phases before production is possible. The economic feasibility of exploration and development
projects is based on many factors such as:
completion of feasibility studies to further verify Mineral Resources and establish Mineral Reserves
and commercial viability;
the timing and cost, which can be considerable, of further exploration, preparing feasibility studies,
permitting and construction of infrastructure, mining, beneficiation and processing facilities;
securing a commercially viable sales outlet for our REE products;
the potential need to enter into joint venture or other partnership arrangements to develop the project;
the availability and costs of equipment and skilled labor, as required;
