Company sells 1,257,000 common shares at $2.50 per share in offering
By Devika Patel
Knoxville, Tenn., Oct. 3 – U.S. Rare Earths, Inc. said it raised $3.1 million in a private placement of stock since December.
The company sold 1,257,000 common shares at an effective price of $2.50 per share. Of the shares, 837,000 were sold through June 30 and the remaining 420,000 were sold through Sept. 30.
The price per share is a 65.56% premium to the $1.51 closing share price on Oct. 2.
Investors in the second closing also received warrants for 489,200 shares. Each warrant is exercisable at $1.50 until Dec. 31, 2015. The strike price is a 0.66% discount to the Oct. 2 closing share price.
Proceeds have been used for ongoing exploration, sampling, drilling and preliminary design and engineering work relating to pending exploratory mine operations, as well as metallurgical and mineralogical studies, a study of developing a processing mill design, share repurchases and general working capital.
Based in Plano, Texas, U.S. Rare Earths is an exploration, mining and claims acquisition company that focuses on critical rare earth elements such as dysprosium, europium, neodymium, terbium and yttrium.
| Issuer: | U.S. Rare Earths, Inc.
|
| Issue: | Common stock
|
| Amount: | $3.1 million
|
| Shares: | 1,257,000
|
| Price: | $2.50 (effective)
|
| Warrants: | For 489,200 shares
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| Warrant expiration: | Dec. 31, 2015
|
| Warrant strike price: | $1.50
|
| Announcement date: | Oct. 3
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| Stock symbol: | OTCBB: UREE
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| Stock price: | $1.51 at close Oct. 2
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| Market capitalization: | $49.12 million
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