Rare Element Resources Bear Lodge Project in Wyoming Progresses

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 01/08/15

Rare Element Resources - REE - is developing the Bear Lodge Rare Earth Oxide - REO - project in Wyoming, US. Over the past two months, REE has revised up expected thorium-free REO product purities to 99.999 per cent, published the positive results of its trenching exercise and provided an update on slight delays in the permitting process. Additional funding will be needed for the planned larger-scale demonstration plant. Their reworked dividend discount-based company valuation, at a 10 per cent discount rate, is US 1.05 dollars per share - previously US 1.44 dollars per share. The lower valuation is a result of additional equity dilution based on both higher short-term funding needs of US 45-60 million dollars - as per the Q314 results, and a lower assumed equity issue price of US 50 cents per share used in their valuation. Project risk parameters should improve with better geological and process data.