THUNDER BAY, ONTARIO--(Marketwire - Dec 6, 2012) - Rare Earth Metals Inc. ("Rare Earth Metals", "REM" or the "Company") (TSX VENTURE:RA)(RAREF)(RAREF) is pleased to provide an update regarding progress on finalizing REM''s global rare earth vertical integration strategy and management''s action plans.
REM''s management team, board of directors and advisory board, along with its strategic alliance partner, CEC Rare Earth Corporation ("REC"), have the background, knowledge and experience to complete all aspects of the production and marketing of rare earth metals. This strategy takes full advantage of the REM/REC alliance and includes all aspects of the rare earth industry from exploration and mining to constructing and managing large scale rare earth separation plants. The group will also take advantage of its international business development expertise and its excellent international government relations.
Tracy A. Moore, President and CEO of REM stated: "We are very pleased to outline REM''s proposed action plans to generate future revenues and to commission the design and construction of a heavy rare earth refinery in 2013 for completion in 2014. As a result of our strategic alliance, REC is prepared to begin planning and engineering work on future refining capacity for REM. Furthermore, the action plan anticipates the generation of "revenue and sales" relationships in 2013 by leveraging REC''s connections to secure supply allocations in China and outside China. These are the initial key building blocks for REM to realize its vision of a vertically integrated rare earth business. Over the past three months REC has been collaborating with REM in finalizing the details of a four year action plan designed to achieve our goals. REM has been negotiating with REC to access REC''s expertise in refinery design, construction and operations as well as securing access to its partners."
REM''s vision is to establish a minimum of 10,000 metric tonnes ("MT") of full spectrum refining capability over the next four years. We expect the refineries will be built in modules of 1,000 to 5,000 MT (annual output capacity) in multiple locations, with the ability to separate both light and more importantly, heavy rare earths. The capability to refine heavy rare earths differentiates us from other projects and is, again, based on the expertise and ability of REC and its affiliates.
The strategy entails three key aspects or platforms which are outlined below. The benefits of successful implementation are obvious and include an early stream of revenue and an increased profit margin as each milestone is realized. Additionally, early entry in the rare earth market will help raise REM''s profile and strengthen its business ability, reputation and credibility. The three key platforms are:
1. REM becoming a strategic rare earth supplier in 2013
- REM''s financial resources will be focused on near-term business development with the goal of generating sales revenue by establishing REM as a supplier of rare earth oxides ("REOs") to leading international manufacturers of hi-tech and green-tech products through REC''s connections in China and outside China.
- Secure access to 500 MT of REOs, increasing to 3,000 MT annually by 2015 for sale to customers. Increase REM''s focus on the rare earth industry by divesting of its coal and graphite properties. These are non-strategic assets.
- Seek partners to fund the continuing exploration of REM''s Canadian rare earth properties, while maintaining the rights to separate rare earths from the properties. REC has access to Asian exploration companies interested in Canadian properties.
2. REM establishing itself as one of the earliest non-Chinese HREE Refineries: 2013 - 2014
Establish REM refining capacity / capability sufficient to produce 500 to 1,500 MT annually of REOs by mid-2014 (overweighted to heavy rare earths). Negotiate with one of REC''s affiliates outside of China to acquire REM proprietary refining capacity.
- Leverage REC''s skills of designing, constructing and operating full spectrum (light and heavy) rare earth refineries to build a dedicated REM production capacity on an existing rare earth refinery site
- Secure near term HREE concentrate streams to feed into REM''s refinery
- Become the rare earth separation partner for recycling operators to augment REM''s supply of rare earths
- Secure relationships with major international manufacturer users of rare earths as their strategic rare earth partner/supplier
3. REM developing into a leading Full Spectrum, Vertically Integrated Rare Earth Business outside of China: 2013 - 2016
Expand REM''s annual production capacity to more than 10,000 MT of full spectrum (heavy and light) separated rare earths through:
- Acquisition of existing refineries through REC''s relationships
- Expansion on existing sites
- Specifically design and construct purpose built refineries
- Secure rare earth concentrate off-takes for future production and expansion
- Extend downstream capabilities to separated rare earth products such as alloys, specialty and co-precipitate products, and powders
Stated Michael Stares, board member and former President and CEO of REM, "We are very pleased with the progress made over the past two months by REC and the new direction the Company has taken. The association with rare earth producers and refineries has added a new dimension by providing a team focused on supplying product and services to the rare earth market. We look forward to the coming months and the new opportunities that lie ahead for REM."
ABOUT RARE EARTH METALS
Rare Earth Metals Inc. has recently entered into a strategic advisory agreement with CEC Rare Earth Corp. ("REC") to assist the Company in developing a vertically integrated business within the global rare earth industry. The relationship with REC provides the Company with access to REC''s experienced personnel as well as its business model which includes the full spectrum of the rare earth industry including the designing, building and establishment of operations for rare earth refineries outside of China as well as the ongoing sales and marketing of refined rare earths. In addition to its relationship with REC the Company presently has several rare earth properties exhibiting multi-element potential (REEs, niobium, beryllium, zirconium and iron ore). 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.:
Tracy A. Moore, CEO & President
For more information on the Company, investors should review the Company''s filings that are available at www.sedar.com.
Company information distributed through the Market Access Program is based upon information that Standard & Poor''s considers to be reliable, but neither Standard & Poor''s nor its affiliates warrant its completeness or accuracy, and it should not be relied upon as such. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements (often, but not always, identified by the use of words such as "expect", "may", "could", "anticipate" or "will" and similar expressions) may describe expectations, opinions or guidance that are not statements of fact and which may be based upon information provided by third parties. Forward-looking statements are based upon the opinions, expectations and estimates of management of Rare Earth Metals Inc. ("REM") as at the date the statements are made and are subject to a variety of known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking statements.
Those factors include, but are not limited to, the successful and timely completion of its vertical integration strategy including identifying and negotiating with viable, long term sources of rare earths, transitioning rare earth exploration properties into mines, fund raising to support mining operations, identifying and negotiating with rare earth refineries situated outside of China either to acquire partly or entirely, or commissioning the design, build and operation of one or more rare earth separation refineries to be situated outside of China, raising sufficient funds to support the construction and operation of each refinery, reliance on third parties to meet projected timelines, entering into long term contracts with international manufacturers on terms acceptable to REM, risks related to the receipt of all required approvals including those relating to the commencement of production at selected mines and for each refinery yet to be identified, delays for each in obtaining permits, licenses and operating authorities, environmental matters, water and land use risks, risks associated with the industry in general, commodity prices and exchange rate changes, operational risks associated with exploration, development and production operations, delays or changes in plans, risks associated with the uncertainty of reserve or resource estimates, health and safety risks, uncertainty of estimates and projections of production, costs and expenses, the adequacy of the Company''s financial resources and the availability of additional cash from operations or from financing on reasonable terms or at all, political risks wherever REM may conduct business, risks associated with the relationship between REM and/or its business partners and local governments wherever REM conducts business, radioactivity and related issues, dependence on one or a few mineral projects, loss of key personnel, factors discussed in the Company''s public disclosure record, and other factors that could cause actions, events or results not to be as anticipated. In light of the risks and uncertainties associated with forward-looking statements, readers are cautioned not to place undue reliance upon forward-looking information. Although REM believes that the expectations reflected in the forward-looking statements set out in this press release or incorporated herein by reference are reasonable, it can give no assurance that such expectations will prove to have been correct. Except as required by law, REM does not assume any obligation to update forward-looking statements as set out in this news release. The forward-looking statements of REM contained in this News Release, or incorporated herein by reference, are expressly qualified, in their entirety, by this cautionary statement and the risk factors contained in REM''s regulatory filings available at www.sedar.com.
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Tracy A. Moore
CEO & President
Rare Earth Metals Inc.
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