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Rare Element Resources Implements Extensive Cost Cutting Measures

by User Not Found | Dec 17, 2015
Rare Element Resources implements cost cutting measures.

Will Continue to Trade in U.S. but will Voluntarily Delist from Toronto Stock Exchange

 December 17, 2015 – Lakewood, Colorado – Rare Element Resources Ltd. (the “Company”) (NYSE MKT: REE and TSX: RES), 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 its board of directors has approved additional steps aimed at reducing its on-going cash expenditures in light of prolonged weak market conditions and continued delays in the preparation of the Project’s draft environmental impact statement (DEIS). The cash-conservation programs include significant staff reductions, consolidation of facilities, sale of non-essential equipment and assets, as well as delisting its common shares from the Toronto Stock Exchange (the “TSX”).

The Company has applied for voluntary delisting from the TSX and expects to delist its common shares from the TSX on or about December 31, 2015.  The Company intends to continue the listing of its common shares on NYSE MKT under the ticker “REE”. The Company decided to take this action after considering on-going costs and expenses, both direct and indirect, associated with having its common shares listed on the TSX, and the limited share trading volume on the TSX relative to its share volume on the NYSE MKT, which is where the vast majority of its common shares are traded.  

“We strongly believe in the strategic importance of the Bear Lodge Project and its obvious role as a cornerstone to re-establishing a domestic rare earth supply chain,” said Randall J. Scott, President and CEO.  “Unfortunately, the rare earth market continues to suffer from many of the short-term issues impacting the greater global resource market.  When one couples this with continued uncertainty around the timing and the final requirements of our DEIS, taking these cost-cutting steps is the right business decision for our shareholders. We are hoping to retain the talents of our impacted employees, with many of them having agreed to remain available for consulting work as needed. 

"These measures are intended to position us to be able to move the Project forward expeditiously when conditions improve, while allowing us in the interim to pursue permitting and strategic alternatives like off-take agreements, joint ventures or potential mergers.” 

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.

Please contact Robbin Lee at 720-278-2462, or rlee@rareelementresources.com, for additional information.

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 plans to delist its common shares from the TSX and the timing thereof, its plans to continue trading on the NYSE MKT, its intent to pursue possible strategic alternatives, the Company’s planned cost-cutting measures as well as any impact to the Company from such cost cutting measures.  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. and Canadian securities markets; 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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Rare Element Resources
Fact Sheet

Rare Element Resources
Technology Fact Sheet

Most Recent Presentation
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Open House – October 09, 2023

State and community leaders joined Senator Barrasso, Neal Blue and Brent Berg with the ceremonial groundbreaking shovel

Ceremonial groundbreaking with Senator Barrasso, state and community leaders, Neal Blue (GA) and Brent Berg (RER) 

The Company and General Atomics (GA), supported by state and community leaders, celebrated a ceremonial groundbreaking for their rare earth demonstration plant.

The presentation at the Open House made by Mr. Berg can be found here.

For a summary of the event, please click here.

Please click here to see a video replay from the Newcastle News Letter Journal of the event.

CEO Corner

Commentary from Kelli Kast,
Interim President, CEO and Director

Continuing Our Progress

As I step into the role of Interim President and Chief Executive Officer (“CEO”) for the coming weeks, I do so with confidence that we will seamlessly continue on the path the Board has set for us of progressing construction of the demonstration plant toward operations this summer, and in continuing to build awareness of the Company, the Bear Lodge Project, and the importance of establishing a secure domestic rare earth supply chain.

Please click here to read full content

Please click here to see appointed President and CEO Ken Mushinski's bio

Demo Plant Construction Update (2/20/24)

Utility Upgrades

Utilities Being Upgraded

Services to the site are being upgraded, including power, water and sewer, to support future plant operations.  Mild weather has allowed us to progress this and other outdoor work.

World-Class Technology Partner

General Atomics Fact Sheet
In 2017, an affiliate of General Atomics, one of the largest, most advanced technology companies in the world, took an equity position in Rare Element Resources.  Since that time, they have brought the full force of their technology development team enhance the Company's recovery/separation technology.
To learn more about General Atomics Click Here

Bear Lodge Panoramic
Sample Drilling
Core Samples

The Bear Lodge Project area is a significant mineralized district that contains one of the largest disseminated rare earth deposits in North America. This deposit contains many of the less common, more valuable rare earths that are essential for the magnet materials used in electronics, fiber optics, laser systems for health and defense, and many evolving green technologies, such as hybrid cars, solar panels and wind turbines. Rare Element Resources owns 100% of the Project. 

During the last few years, the Company, along General Atomics, whose affiliate is RER's majority shareholder, have been advancing their proprietary extraction/separation technology and have successfully produced commercial-grade neodymium/praseodymium (Nd/Pr) oxide in pilot-plant testing.  These materials are key components to the fast-growing, permanent magnet sector. The next step will be operations of a demonstration plant, which is currently under construction in Upton, WY.  Results generated from operating this plant will be used for the design and economic evaluation of a commercial rare earth processing facility. 

Project Highlights

  • Proprietary Rare Earth Extraction/Separation Technology – Successfully advanced the Company’s technology and produced neodymium/praseodymium (Nd/Pr) oxide in pilot-plant testing. Construction of a demonstration plant is currently underway to prove the scalability of the process and define the requirements for a commercial plant.
  • World-Class Technology Partner and Majority Shareholder – General Atomics, through its affiliate, is the majority shareholder in Rare Element Resources, is a technology leader with a proven track record of bringing new ideas to market.  Their understanding of the strategic role rare earths play in numerous advancing technologies makes them keenly aware of the need for a secure, domestic supply of rare earths. Their relationship within the U.S. Government have been essential to our ability to advance our technology.
  • Bear Lodge Project – Well-defined resource with excellent concentrations of the rare earth elements essential to high-strength, permanent magnets and the many industries that depend on them.  Two of those industries, electric vehicles and wind turbines, are expected to drive a doubling of demand for magnet materials in the next 10 years.
  • Strategic Location – Located in northeast Wyoming, the Bear Lodge Project has easy access to a major interstate, transcontinental rail, natural gas and low-power.  The area has existing infrastructure with a ready and skilled workforce.  The State of Wyoming has a rich history of mineral development and a pro-business focus, and its leaders are actively committed to economic diversification. 
  • Strong Federal and State Support – Both the Department of Energy (DOE) and the Wyoming Energy Authority (WEA) have shown their support for the Project through funding of over $26M for the demonstration plant.  The DOE continues to pursue ways to secure sources for material that will be key to industrial needs, especially those that support the country’s initiative of reducing carbon emissions, like electric vehicles and wind turbines. The WEA is supporting the State’s desire to diversify employment and understands that Wyoming can play a key role in developing a domestic supply chain – from minerals to magnets. 
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