RER completes funding for demo plant

Rare Element Resources (RER) announced this week that enough money has been raised through its rights offering of common shares to complete funding for the next stage of its rare earth project in northeast Wyoming.

The goal of the offering was to raise $25.4 million to complete the necessary funding for a demonstration plant in Upton that will process and separate rare earth elements from ore that was previously stockpiled at the Bear Lodge Project in Crook County. RER estimates that $25.4 million in gross proceeds were raised.

“The result is a major step forward for the company’s plans to construct the demonstration scale rare earths separation and processing plant at the Upton industrial park in Weston County,” said George Buyers, RER consultant.

The net proceeds – estimated at $25.1 million – will be added to the $21.9 million financial award from the U.S. Department of Energy to fund the demonstration plant. RER has said it plans to use the funds to permit, license, engineer, construct and operate the demonstration plant, which it expects will be located in Upton.

“Plant design is already underway. This work as well as licensing, engineering, construction and operation are expected to take approximately 40 months,” says Byers.

“Ore that has been recovered and stockpiled at the Bull Hill mine site in adjoining Crook County north of Sundance will be processed at the plant.”

According to a press release from the company, the rights offering was oversubscribed. Preliminary results suggest RER will be issuing around 105.8 million common shares at 24 cents each, of which 65.5 million will go to Synchron, the company’s significant shareholder.

Following the issuance, Synchron is expected to own around 54.8% of the common shares outstanding.