The article that appeared in the October 26 issue of The Sundance Times, “RER: We’re Moving Forward” stating that the investment deal was complete and that Rare Earth Resources contended that they are restarting the project came as a surprise.
The project they are referring to involves the creation of a 400 foot deep pit just North of Sundance and a processing facility in Upton to which the ore would be shipped. The amount of money raised so far is a mere $4.75 million from Synchron, an affiliate of General Atomics, which has also secured the option of buying an additional $5,040,000 worth of stock within the next four years so says this article.
I say this came as a surprise because just two years ago Molycorp, which operated the only rare earth mine and processing facility in the United States located near Mountain Pass, CA, filed for chapter 11 bankruptcy soon after investing $781 million to upgrade its facility in June 2011. RER touts its revolutionary extraction method (still under development they say), a story reminiscent of the lithium “gold rush” predicted for both Simbol and American Lithium in 2011 and 2013 respectively.
Both went bust without ever producing a single ounce of lithium but ripped off both American and international investors. There appears to be no lack of rare earth production facilities around the world: Canada, Australia, South Africa, Greenland, Sweden, Brazil and China to mention the largest.
And there is no lack of rare earths on the international market nor dominance by any one country with low prices dominating that market. So how is it that RER with its paltry promise of $10 million in start-up money is going to break into this market? Or is this just another scam perpetrated onto unwary investors?