THUNDER BAY, ONTARIO--(Marketwire - Oct 11, 2012) - Rare Earth Metals Inc. ("Rare Earth Metals", "RA" or the "Company") (TSX VENTURE:RA)(RAREF)(RAREF) is pleased to announce the closing of the acquisition of four key rare earth properties known as Mann One and Two Tom within the Red Wine district in Labrador, adjacent mineral claims to the Mann One and Two Tom properties known as the Red Wine Claims plus surface rights and mineral claims adjacent to the Lavergne-Springer Property in Ontario known as the "Lavergne-Springer Extension" (collectively referred to as the "Acquired Properties").
The Acquired Properties together with the previously acquired Lavergne-Springer Property and the Dory Pond Property in the Red Wine complex (collectively referred to as the "Properties") have been acquired based on the success of exploration to date and represent the Company''s initial rare earth property inventory. The Properties will be the basis of a platform from which the recently announced rare earth vertical integration strategy will be launched. Going forward, in addition to continuing to assess the Properties, the Company will be assessing other property opportunities developed by third parties if they have the mineralogical characteristics that are required in order to have the potential to produce rare earth end products that meet customer specifications.
In order to complete the acquisition of the Acquired Properties the Company: (i) paid and issued to the vendors of the Mann One and Two Tom properties the aggregate of $86,800 and 100,000 common shares pursuant to an amended option agreement; (ii) paid $100,000 to the vendor of the Red Wine Claims pursuant to an amended option agreement; and (iii) issued 800,000 common shares in June 2012 to the owners of the Lavergne-Springer Extension pursuant to an amended option agreement. The Company previously acquired 100% of the Lavergne-Springer patented surface rights for $150,000 and has the right to acquire 100% of the patented mineral rights for $241,111 of which it has paid $80,000. The Acquired Properties are each subject to a 2% NSR royalty, 50% of each may be purchased by the Company for $1 million.
The results of exploration on the Properties include: (i) a NI 43-101 compliant inferred resource estimate at the Two Tom property consisting of 40 million tonnes grading 1.18% total rare earth oxide (see press release dated December 13, 2011); (ii) at the Dory Pond Property a 42.9 meter intercept of 1.11% total rare earth oxide of which 41% was heavy rare earth oxide situated in a large soil anomaly measuring 3 kilometers by 2 kilometers (see press release dated Sept 6, 2011); and (iii) a NI 43-101 compliant indicated resource estimate at the Lavergne-Springer Property consisting of 4.2 million tons averaging 1.14% total rare earth oxides with an inferred resources of 12.7 million tons averaging 1.17% total rare earth oxides consisting of 17% neodymium oxide content in the indicated category and 15.6% neodymium oxide content in the inferred category (see press release dated May 11, 2012).
Reg Felix, P Geo., is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information forming the basis for release.
Rare Earth Metals 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 to REC the Company presently has several rare earth properties including 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. 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, assisting with 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 a rare earth separation refinery to be situated outside of China, raising sufficient funds to support the construction and operation of the 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 a refinery yet to be identified, delays 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.