Major milestones in 2013 include 85% growth in resource, patenting of rare earth recovery process technology and progress on Project permitting
2014 work plan outlined
LAKEWOOD, Colo.--(BUSINESS WIRE)-- Rare Element Resources Ltd. (NYSE MKT: REE and TSX: RES) (the “Company”), a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project (the “Project”), reported today that it has filed its audited consolidated financial statements on Form 10-K for the twelve-month period ended December 31, 2013 on www.sec.gov and www.sedar.com.
“2013 was a year of great progress for the Company. We grew our Measured and Indicated Resource by 85%, advanced and patented our innovative rare earth recovery process and progressed permitting of the Bear Lodge Project,” said Randall J. Scott, President and Chief Executive Officer. “We plan to continue this momentum in 2014. Our geologists have shifted their focus to support planned mining activities while continuing to evaluate the upside opportunities in this world-class rare earth district. To optimize our processing technology, some additional test work is currently underway that will then allow us to move into detailed engineering. Work continues on the Environmental Impact Statement, and on a parallel track, we will pursue the state and federal permits necessary for operations. We are integrating the results of our 2013 efforts and recently completed trade-off studies into revised economics for the Project, which should be available in the second quarter. And, we are evaluating the cost/benefit of downstream rare earth element separation, given the high purity of our concentrate, as well as mineral byproduct recovery. All these efforts support our goal, subject to timely permitting, of commissioning the Bear Lodge Project in late 2016.”
Highlights of 2013
Quarter-End December 31, 2013 Financial Results (Please note that financial results published by the Company are all stated in U.S. Dollars.)
For accounting purposes, the Company is classified as an exploration stage company and, as such, does not have production-related revenues at this time. The net loss for the quarter ended December 31, 2013, totaled $5.7 million, or $0.12 per share, compared to a net loss of $9.6 million, or $0.22 per share, for the same period in 2012. The $3.9 million positive variance in net loss between the two quarters was due almost exclusively to a smaller exploration and evaluation program in 2013, the goal of which was to upgrade known resources at the Project.
Year-End December 31, 2013 Financial Results
The net loss for the year ended December 31, 2013 totaled $22.2 million, or $0.48 per share, compared to a net loss of $29.4 million, or $0.66 per share, for the same period in 2012. The $7.2 million positive variance in net loss between the two periods was primarily due to the following:
Year-End Cash Balance
As of December 31, 2013, the Company had cash and cash equivalents and short-term investments of $23.9 million, compared with $40.1 million at the end of the prior year. Cash and cash equivalents used in 2013 were $23.6 million and were partially offset by $7.4 million in net proceeds from an offering of common shares and warrants in a registered direct offering completed in September 2013.
Work funded during the year included drilling and evaluation on both the Bull Hill and Whitetail Ridge deposits; metallurgical work for both resource evaluation and process testing, including third-party pilot plant testing of processing technology; numerous engineering and economic trade-off studies; and ongoing permitting efforts and related environmental monitoring costs.
Cash and cash equivalents at December 31, 2013 are sufficient to conduct our current exploration and development plans through the end of 2014.
“The Company remains committed to advancing the Bear Lodge Project toward development as quickly as possible,” said Paul H. Zink, Senior Vice President and Chief Financial Officer. “In 2013, we further defined our resource, advanced our patent-pending recovery process and progressed our Project’s permitting. We believe that these impressive accomplishments set us apart in the rare earth space and support our goal of being the next domestic rare earth producer.”
The audited financial statements are available through the Canadian securities regulatory authorities at www.sedar.com, and with the U.S. Securities and Exchange Commission at www.sec.gov. They are also available on the Company’s website at www.rareelementresources.com.
Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths. The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project is currently underway.
Jaye T Pickarts, P.E., Rare Element's internal, qualified person under Canadian NI 43-101, supervised the preparation of the scientific and technical information concerning the Company's mineral project and process contained in this news release. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for our project as filed on SEDAR at www.sedar.com.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are usually identified by our use of certain terminology, including "will", "believes", "may", "expects", "should", "seeks", "anticipates", "plans", "has potential to", or "intends" or by discussions of strategy or intentions. Such forward looking statements include statements regarding the timing and expected results of a revised economic study, processing test work and expected results, drilling program anticipated results, permitting process and progress and project development plans for the future. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the progress of our Bear Lodge Project, fluctuations in demand for, and price of, rare earth products; success of process technology under testing; results from geological evaluations and programs, timing of and unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; and general economic conditions. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Annual Report on Form 10-K for the twelve months ended December 31, 2013. We expect that the above estimates as to development plans, technology and other processes, time frames and financial needs will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.
Rare Element Resources Ltd.
Robbin Lee, 720-278-2462
Source: Rare Element Resources Ltd.