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Title to our Bear Lodge Property may be subject to other claims, or we may lose our interest in our claims, which
could affect our property rights and claims.
There are risks that title to our Bear Lodge Property may be challenged or impugned. Our Bear Lodge Property is
located in the state of Wyoming and may be subject to prior unrecorded agreements, transfers or native land claims,
and title may be affected by undetected defects. There may be valid challenges to the title of our Bear Lodge
Property which, if successful, could impair development and/or operations.
The vast majority of the mineral rights to our Bear Lodge Property consist of “unpatented” mining claims created
and maintained in accordance with the U.S. General Mining Law. Unpatented mining claims are unique property
interests and are generally considered to be subject to greater title risk than other real property interests because the
validity of unpatented mining claims can be uncertain. This uncertainty arises, in part, out of the complex federal
and state laws and regulations an owner of an unpatented mining claim must comply with to locate and maintain a
valid claim. Also, unpatented mining claims are always subject to possible challenges by third parties or validity
contests by the federal government. The validity of an unpatented mining claim, in terms of both its location and its
maintenance, is dependent on strict compliance with not only a complex body of U.S. federal and state statutory law,
but also administrative and judicial decisions interpreting those statutes and case law. In addition, there may be
limitations as to the completeness of public records that determine prior claimants that could impact the validity or
ownership of unpatented mining claims.
Our operations are subject to significant uninsured risks that could negatively impact future profitability as we
maintain limited insurance against our operations.
The exploration of our Bear Lodge Property entails certain risks including unexpected or unusual operating
conditions, such as rock bursts, cave-ins, flooding, fire and earthquakes. It is not always possible to insure against
these risks. Should events such as these arise, they could reduce or eliminate our assets and shareholder equity as
well as result in increased costs and/or a decline in the value of our assets or common shares. We expect to maintain
general liability, director and officer insurance, and some insurance against our assets but not with expectation of
full replacement value. We may decide to update or amend our insurance portfolio in the future, if coverage is
available at economically viable rates.
Increased competition could adversely affect our ability to attract necessary capital funding and/or acquire
suitable properties or prospects for mineral exploration in the future.
The mining industry is intensely competitive. Significant competition exists for the acquisition of properties
producing or capable of producing REE, gold or other metals. We may be at a competitive disadvantage in acquiring
additional mining properties because we must compete with other individuals and companies, many of which have
greater financial resources, operational experience and technical capabilities than we have. We may also encounter
increasing competition from other mining companies in our efforts to hire experienced mining professionals.
Competition for exploration resources at all levels can be very intense, particularly affecting the availability of
manpower, drill rigs, mining equipment and production equipment. Increased competition could adversely affect our
ability to attract necessary capital funding, acquire suitable producing properties or prospects for mineral exploration
in the future or attract or retain key personnel or outside technical resources.
Land reclamation requirements for our properties may be burdensome or too expensive.
Although variable depending on location and the governing authority, land reclamation requirements are generally
imposed on mineral exploration companies as well as companies with mining operations to minimize long-term
effects of land disturbance.
Reclamation may include requirements to:
control dispersion of potentially deleterious effluents;
treat ground and surface water to drinking water standards; and
reasonably re-establish pre-disturbance vegetation and land forms.
