RER announces Synchron share purchase

Current shareholder Synchron has made an additional share purchase in Rare Element Resources (RER) totaling just over $5 million, according to George Buyers, Consultant. RER believes this represents a high level of confidence in the viability of the proposed rare earth mine in the Bearlodge area while, at the same time, pilot plant testing appears to be returning positive results.

“General Atomics Corp., through its Synchron affiliate which is a current shareholder in the Company, has announced that it will exercise its common share purchase option,” Byers says.

“The resulting ownership by Synchron will be approximately 49 percent of the outstanding common shares of the company.”

The purchase process is expected to be complete by October 21.

“Synchron had rights to exercise this option by October 2021, so advancing this decision by two years shows its high level of confidence in the high quality and ultimate success of the Bear Lodge Project in Crook County,” Byers adds.

RER announced in 2017 that Synchron would be purchasing 33.5 percent of the company’s issued common shares, providing a cash injection of around $4.5 million that was used to further test work on RER’s proprietary technology.

The testing was conducted by UIT, an affiliate of Synchron, and took place using UIT’s advanced mineral and materials research capabilities in Germany.

The cash was also used to validate and further validate RER’s separation technology with the goal of separating neodymium and praseodymium (known as NdPr), the premier rare earth element used to make high-strength permanent magnets.

Earlier this year, RER launched a pilot plant campaign with UIT, the results of which will be used as a “key decision point” for the company’s future, said CEO Randy Scott at the time.

“The first phase of the pilot plant testing successfully produced a high grade, mixed rare earth oxide concentrate. UIT continues to operate the pilot plant for the separation test phase which is scheduled to be completed in the fourth quarter 2019,” says Byers.

The separation test phase hopes to produce several products: NdPr oxide, lanthanum oxide and a mixed concentrate of heavy and mid rare earths.

“The enhanced process, if successful, is expected to significantly reduce process steps and operating costs as well as further reduce environmental impacts and those associated costs,” Byers says.

According to a press release from RER, the company is pleased to further its partnership with Synchron.

“We believe the early exercise is indicative of our common view that the Company and the Bear Lodge Project are well poised to become a near-term secure domestic supply of critical rare earths at a time when the market is demanding new reliable sources,” says Scott in the press release.

“Synchron has already contributed a great deal to the Company through its board representation and initial financial investment, and we believe this additional investment exemplifies its confidence in our trajectory.”