SIERRA BLANCA, TX--(Marketwire - Jan 2, 2013) - Texas Rare Earth Resources Corp. (OTCQX: TRER) ("Texas Rare Earth"), a heavy rare earths exploration company, today announced that the Company and insiders have collectively purchased over 1.5 million shares of common stock or over 4% of the shares of common stock outstanding based on 36.6 million shares of common stock outstanding as of December 27, 2012.
Overview of Common Share Purchases:
- Texas Rare Earth repurchased 576,923 shares of common stock from a private investor at a price of $0.23 per share for an aggregate purchase price of $132,692 on December 27, 2012; the Company plans to cancel the acquired shares from treasury thereby reducing the shares of common stock outstanding to approximately 35.9 million;
- Three directors purchased 423,077 shares of common stock at $0.23 per share for an aggregate purchase price of $97,308 in a private transaction with a private investor on December 28, 2012;
- Between October 5th and December 3rd, 2012, directors purchased 559,025 shares of common stock in the open market and in block transactions at an average price of $0.384 per share for a total purchase price of $214,600; and
- The Company had approximately $5.54 million in cash on hand on January 1, 2013 which management believes is sufficient to advance our business plan through 2014.
Dan Gorski, Chief Executive Officer, stated, "The board and entire management team believes that at our current valuation our company is undervalued and made a decision to enhance shareholder value by investing in ourselves and repurchasing our common stock. On multiple occasions over the past 3 months insiders have taken the opportunity to buy stock as it presented itself. As we begin 2013, we are optimistic about the strategy we have set forth based on our business plan and believe we have sufficient capital to execute on this plan through 2014."
The repurchase of shares of common stock on December 27, 2012, was made pursuant to a privately negotiated stock repurchase agreement. The purchase of shares of common stock by directors on December 28, 2012, was made pursuant to a privately negotiated transaction with the same private investor. The per share repurchase price and the purchase price for the shares was determined through arms-length negotiations with the private investor.
The stock repurchase agreement and the related transactions were approved by our board of directors. The repurchase price was paid through cash on hand from our available surplus. Other than the private repurchase as described above, our board of directors has not authorized any stock repurchase program or plan, and we have no current plans to effect any open-market purchases of our common stock or other repurchases of our common stock.
About Texas Rare Earth Resources Corp.
Texas Rare Earth Resources Corp.'s primary focus is exploring and, if warranted, developing its Round Top rare earth minerals project located in Hudspeth County, Texas, 85 miles east of El Paso. The Company's common stock trades on the OTCQX U.S. tier under the symbol "TRER." For more information on Texas Rare Earth Resources Corp., visit its website at www.trer.com.
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding the Company having sufficient capital to execute its current business plan through 2014. When used in this press release, the words "potential," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if, "anticipate," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, risks related to changes in future operating costs and working capital balance and risks related to the ability of the company to successfully monetize its non-rare earth resources, as well as those factors discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K, as filed on November 15, 2012, and other documents filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.