PLANO, Texas and NEW YORK, Oct. 3, 2013 /PRNewswire/ -- U.S. Rare Earths, Inc., "UREE" or the "Company", ( UREE), a U.S. domestic rare earths exploration company with mining claims in Idaho, Montana, and Colorado, announced today that it has closed a non-brokered private placement of 1,977,500 shares of restricted common stock with gross proceeds in excess of $4.0 million. The offering price per share was $2.00. Proceeds from the offering are expected to be used for exploration, drilling, and preliminary design and engineering work, as it relates to pending exploratory mine operations, metallurgical and mineralogical studies, a study of developing a processing mill design and general working capital.
"I am very pleased to announce the successful financing of the Company in a non-dilutive manner. The shares issued in the financing are as a result of the terms disclosed in the company's 8K filing of July 2, 2013. The funds allow us to not only continue, but also expand our development of the Company's premier properties in Colorado, Idaho and Montana, including our Phase I drilling and exploration of the Lemhi Pass. Our primary focus remains on creating American independence and sustainability as it pertains to the supply of Critical Rare Earth Elements," said U.S. Rare Earths Chairman, Victor Lattimore.
The Company's properties in the Lemhi Pass region 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 DOE as being at "Critical Risk": Dysprosium, Europium, Neodymium, Terbium and Yttrium.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.