Rare Element Resources (TSX-V: RES and AMEX: REE) said Tuesday it has agreed to the terms of its previously announced $50.0 million public offering.
The company has laid out terms, with a syndicate of agents co-led by Byron Securities and GMP, to offer up to 5.56 million common shares of the company at an issue price of C$9.00 per share.
The agents also have the option to purchase from the company up to 834,000 additional shares at the issue price, exercisable for a period of 30 days from the closing date of the offering.
"Rare Element has spent the past three weeks meeting with important investors in many locations. This is an important step in continuing the growth of the company and ensuring that shareholders are well informed about our plans to become a rare earth oxide producer," said CFO and director Mark T. Brown.
The new funds from the financing will be used to fund the work program at the company's Bear Lodge rare earths deposit in Wyoming, including the completion of a pre-feasibility study, pilot plant testing, drilling, metallurgical work and exploration programs.
The agents are also entitled to a 6% cash commission and broker warrants, which can be used for a period of two years from closing.
The offering is expected to close around December 22, 2010, subject to customary conditions.
The company also said today that it has received conditional approval to list the shares distributed under the offering on the TSX Venture Exchange, and has applied to list the Shares on the NYSE Amex.