TSX: RES & NYSE AMEX: REE
VANCOUVER, Sept. 28, 2011 /PRNewswire/ - Rare Element Resources Ltd. (TSX: RES) (NYSE-AMEX: REE) (the "Company" or "Rare Element") announced that its audited consolidated financial statements and Management's Discussion and Analysis, and Form 10K, for the year ended June 30, 2011 have been filed on www.sedar.com and www.sec.gov. In July, 2011, the Company became a domestic issuer in the United States ("US") and transitioned from reporting according to Canadian regulations with US secondary filings, to reporting according to the US regulations with Canadian secondary filings. While this has no impact on the value of the Company, shareholders will have to adapt to filings based on US security regulations, such as Form 10-K, Form 10-Q and Form 8-K. As a result of these regulations, the Company has adopted US generally accepted accounting principles ("US GAAP") in its first annual filing under Form 10-K.
All dollar amounts stated below are in United States dollars.
Year Ended June 30, 2011 Financial Highlights:
- During the year ended June 30, 2011, a total of $7,339,669 (2010 - $2,724,518) was spent on the Bear Lodge Rare-Earth Project, including $412,330 (2010 - $nil) on the pre-feasibility study and $1,172,678 (2010 - $69,713) was spent on the Sundance Gold Project. Both projects are located on the same property.
- Administrative expenditures, excluding amortization, non-cash stock-based compensation and foreign exchange amounted to $2,056,536 (2010 - $1,145,906) for the period, up 79% compared to the previous year.
- Loss for the period was $16,657,962 (2010 - $2,791,969) or $0.43 per share (2010 - $0.09), up 497% from the previous year due to the exploration programs conducted on both the Bear Lodge Rare-Earth Project and the Sundance Gold Project in fiscal 2011 as well as the non-cash mark-to-market loss on share purchase warrants in fiscal 2011.
- Cash and cash equivalents at June 30, 2011 were $72,311,970 ( June 30, 2010 - $11,460,476), reflecting the $57.5 million financing completed in December, 2010 and the exercise of almost all of the Company's outstanding warrants.
- Completed the National Instrument 43-101(NI 43-101)-compliant mineral resource estimate on June 14, 2011.
- Completed the 2010 drilling program on the Bear Lodge rare-earth element ("REE") project in November 2010. This drilling included 61 drill holes and an additional 40 large diameter core holes. The large diameter core provided a bulk sample for pilot-plant testing and assays from that core provided the highest grades of REE found to date.
- Advanced a preliminary REE metallurgical recovery process in July 2010, with 80 percent estimated recoveries of rare-earth elements from the Bear Lodge deposit to produce a 42-45 percent rare-earth-oxide ("REO") concentrate.
- Completed a Preliminary Economic Assessment (PEA), in compliance with the NI 43-101, which shows positive economics using 3-year trailing average prices for rare-earth concentrates.
- Collected an 8.8 ton sample of REE mineralized material and additional bulk sample material, which is currently being used in a pilot plant test that commenced September, 2011.
- Completed a 34-hole gold-focused drilling program in November, 2010 on the Sundance project focusing on three main gold targets and announced the Company's first NI 43-101-compliant inferred mineral resource estimate on March 14, 2011.
- Discovery of enriched heavy rare earths zones at Whitetail Ridge, East Taylor and Carbon and high grade at East Taylor within the Bear Lodge Project.
- Successfully listed the Company's common shares for trading on the NYSE Amex Stock Exchange headquartered in New York, NY, as well as graduating the trading of our shares in Canada from Tier One of the TSX Venture Exchange to the TSX main trading board.
- Established an executive office in Denver, Colorado. Successfully hired various key executives, including Chief Operating Officer, Chief Financial Officer and VP of Government and Community Relations.