THUNDER BAY, ONTARIO--(Marketwire - Sept. 7, 2012) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Rare Earth Metals Inc. ("Rare Earth Metals", "RA" or the "Company") (TSX VENTURE:RA)(OTCQX:RAREF)(PINKSHEETS:RAREF) is pleased to announce the following corporate developments:
CEC Rare Earth Corp. Retained as Strategic Advisor
CEC Rare Earth Corp. ("REC"), a private British Columbia company, has been retained to assist the Company in developing a vertically integrated business within the global rare earth industry. REC was founded in 2011 to integrate China's dominant multi-billion dollar rare earth industry with businesses in the international marketplace. REC's business model focusses on two complementary elements: (a) designing, building and establishing operations for rare earth refineries outside of China; and (b) ongoing sales and marketing of refined rare earths. REC directors, senior management and advisors have over 40 years' experience in the rare earth industry including refinery design, construction, operations and trouble-shooting in addition to international sales and business development.
Comment by Outgoing CEO
Outgoing CEO Michael Stares commented on the corporate developments: "Having REC as a strategic advisor enables the Company to begin executing on a business plan that will position the Company to be a fully integrated rare earth company. Aligning itself with REC represents an opportunity for the Company to have access to personnel who have the necessary experience and business contacts in the rare earth industry. Our goal is to build a truly successful company in an industry sector that has very few participants with the necessary skill set to take a rare earth company through the production and refining process stages and execute sales to global end users of rare earths."
Appointment of REC Representatives to the Board
In conjunction with REC being retained as strategic advisor the following three REC representatives have been appointed to the Company's board of directors:
Tracy A. Moore
Mr. Tracy A. Moore has over 20 years' business, corporate finance and strategic and business planning experience having worked in over 15 countries, while based in Vancouver, Canada. For the past four years and until recently, he provided corporate finance services to the Canada Export Centre Corporation and its clients and partners. He was instrumental in founding CEC Rare Earth Corporation in 2010/2011, he founded the MCSI Group of Companies in 1990, and previously he worked with three Canadian chartered accountant firms in the practice areas of corporate finance, restructuring, and audit assurance. In addition to his consulting practice he has owned and operated a variety of businesses. He has a bachelor of commerce degree from the University of British Columbia. Effective immediately, Mr. Moore has resigned as the CEO and a director of CEC Rare Earth Corporation so that he may focus on developing the Company as an international business within the rare earth industry. He will continue as an advisor to CEC Rare Earth Corporation.
Mr. Bill Purcell brings 30 years of leadership experience in the oil industry, with Exxon and Chevron's refining and marketing operations in Canada. At Chevron, Mr. Purcell sat on the Canadian strategic and business planning leadership team and the executive environment and safety compliance committee. During this time, Chevron solidified its downstream market leadership and established its reputation for world class environment, safety and reliability performance. He has a wide array of project and operating achievements in all functional areas of refining and marketing. Mr. Purcell has a bachelors degree in business and economics from Simon Fraser University and an MBA from University of British Columbia. In 2010 he joined Canada Export Centre Corporation as Director of Rare Earth Trading, then in 2011 he helped found CEC Rare Earth Corporation at which time he was appointed President and COO.
Mr. Peter Shearing brings a broad range of international business experience in high tech and contract electronics manufacturing. He has held numerous senior executive positions in operational, technical and customer facing roles in companies including Nortel and Breconridge Manufacturing. These roles included Vice President roles with global responsibility for engineering, operations and program management. His background includes a Bachelors of Materials Science Engineering from the University of Western Ontario and a Masters of Electrical Engineering from the Royal Military College. He served as an engineering officer in the Canadian Army, filling leadership and technical roles for over a decade. He continues to contribute technical and design leadership as Vice President of EchoTrack Inc., a privately held environmental monitoring technology company serving various industries including wind energy development. He is presently the Senior Vice-President of Business Development at CEC Rare Earth Corporation.
Resignation of Directors
To facilitate the addition of the REC representatives to the Company's board Bill Harper, Bill McCrindle and Wayne Reid have resigned as directors of the Company. The Company would like to thank the outgoing directors for their valuable contributions and for serving as board members. Tracy A. Moore has also been appointed as Chief Executive Officer and President of the Company, having replaced Michael Stares who will stay on as a director.
The Company also announces, subject to regulatory approval, a private placement of up to 54 million units at $0.05 per unit (the "Units") to raise gross proceeds of up to $2.7 million. Each Unit is comprised of one common share and one-half of a share purchase warrant, each full warrant being exercisable at $0.10 to acquire a further common share for 24 months. A 10% finder's fee is payable in conjunction with the private placement.
The Company announces the granting of 18 million stock options exercisable at $0.10 per share for five years to directors, officers, consultants and employees. Of the aggregate number of stock options being granted approximately 10 million will be subject to the Company receiving shareholder approval at the next annual general meeting to increase the number of stock options available under the Company's stock option plan.
About Rare Earth Metals Inc.
Rare Earth Metals is a well-funded company with a focus on exploring for Rare Earth Element deposits. The Company's shares are listed on the TSX-V exchange under the symbol RA and the OTCQX exchange under the symbol RAREF. The Company presently has two advanced projects in Ontario and Newfoundland and Labrador, both exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. Its flagship properties are the Clay-Howells Prospect and the Red Wine Project. The Company has recently acquired additional properties in the Coldwell Complex near Marathon, Ontario and the Lavergne-Springer REE Prospect near Sturgeon Falls, Ontario. Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under the Company's profile at www.sedar.com. For more information, please visit the Rare Earth Metals web site at www.rareearthmetals.ca.
ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:
Michael Stares, Director
This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."