U.S. Rare Earths, Inc. Announces Closing Of Equity And Debt Financings
LONOKE, Ark., Sept. 25, 2012 /PRNewswire/ — U.S. Rare Earths, Inc., (“UREE“), www.USRareEarths.com, (“the Company”) is pleased to announce that it has closed a debt and equity financing totaling $1.2 million, led by the Chairman of the Board of Directors, J. Victor Lattimore. This financing follows a successful 2011 Company-led Private Placement that raised a total of $3.8 million. Together these financings totaled $5 million. The use of the proceeds from the financings advances the Company’s portfolio of rare earth element properties in Idaho, Montana and Colorado, supports its 2012 and 2013 drill programs, and provides further general working capital.
U.S. Rare Earth’s 2012 Drill Program is focusing on the Company’s properties at Diamond Creek, Lemhi Pass and North Fork in Idaho. In late 2012 and 2013, the Company is expected to focus on drilling the Sheep Creek and Last Chance properties in Montana. Both drill programs are on properties the Company acquired in the U.S. Rare Earths and Colorado Rare Earths merger completed last August, 2011.
In July 2012, the Company announced the engagement of Ruen Drilling Inc. (“Ruen”). Ruen has 30 years of drilling experience spanning across three continents. Ruen is expected to lead the US Rare Earths’ 2012 Drill Program, focusing on Idaho and follow on programs at the Montana properties.
U.S. Rare Earths’ properties in Idaho and Montana, including Lemhi Pass, have been recognized in the U.S. Department of Energy’s Critical Materials Strategy publications to have significant showings of Heavy Rare Earth Elements, in particular for the five Rare Earths identified by the Department of Energy (“DOE”) as being at “critical risk” — Dysprosium, Europium, Neodymium, Terbium and Yttrium.
An independent preliminary assessment conducted by Howard Dunn of Process Engineering indicates the presence of 0.645MT (metric tons) of inferred resources at 0.95% REO (Rare Earth Oxides; weighted average), with an additional 1.5MT of inferred resources at 0.67% REO (weighted average) for just a portion of the Company’s Idaho and Montana claims, both in the Lemhi Pass region.
The Company announced in June 2012 that surface rock sampling conducted in the fourth quarter 2011 at its Idaho and Montana properties near Lemhi Pass and North Fork Idaho, along with results from sampling in 2009 and 2010 indicate the presence of Total Rare Earth (TRE) ranging as high as 26%.
About U.S. Rare Earths, Inc.:
U.S. Rare Earths, Inc. (“USRE”, “U.S. Rare Earths” or the “Company”) is a mineral exploration, mining and claims acquisition company based in Lonoke, AR. Formerly Colorado Rare Earths, Inc., the Company holds over 12,000 acres of mining claims for rare-earth elements in Colorado, Idaho and Montana. In Colorado, these claims include the Powderhorn Property in Gunnison County, and Wet Mountain Property in Fremont and Custer Counties. Additional claims include the Lemhi Pass Property in Lemhi County, Idaho and Beaverhead County, Montana; Diamond Creek and North Fork Properties in Lemhi County, Idaho and the Sheep Creek Property in Ravalli County, Montana.
Rare earth elements are critical to many existing and emerging 21st century applications including clean-energy technologies such as hybrid cars and electric vehicles; high-technology applications including cell phones and digital music players; hard disk drives used in computers; microphones; fiber optics; lasers; and in addition, critical defense applications such as global positioning systems, radar and sonar; and advanced water treatment applications, including those for industrial, military, homeland security, domestic and foreign aid use. For more information visit www.usrareearths.com.
Statements in this press release including statements regarding US Rare Earth’s beliefs, expectations, intentions or strategies for the future, may be “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, intensified competition, operating problems and their impact on revenues and profit margins, anticipated future business strategies and financial performance, anticipated future number of customers, business prospects, legislative developments and similar matters. Risk factors, cautionary statements and other conditions, which could cause US Rare Earth’s actual results to differ from management’s current expectations, are contained in US Rare Earth’s filings with the Securities and Exchange Commission and available through http://www.sec.gov.
SOURCE U.S. Rare Earths, Inc.