Texas Rare Earth Resources Corp. Announces Financing
HOUSTON, Feb. 1, 2011 /PRNewswire/ -- Texas Rare Earth Resources (Pink Sheets: TRER) announces that it has successfully completed an equity private placement financing of $2.0 million. The round was led by a New York City based institutional investor and included participation by other institutional and accredited investors. The funds will be used primarily to advance our Rare Earth-Beryllium-Uranium Project at Round Top Mountain in Hudspeth County Texas. We placed a total of 800,000 shares at $2.50 per share and issued five year warrants to purchase 800,000 shares of common stock at an exercise price of $2.50 per share. Additionally, we granted a 120 day option to these investors to purchase up to 3,200,000 shares of our common stock at a purchase price of $2.50 per share, with 100% warrant coverage.
Dan Gorski, CEO of Texas Rare Earth Resources, commented, "We are extremely pleased to complete this financing and to welcome the sophisticated institutional investors who are joining our shareholder ranks. This is a dynamic period for Texas Rare Earth and our lead project at Round Top Mountain and these funds will allow us to progress the project without delay. We have very aggressive 2011 plans for strengthening our company and this is an important step."
Texas Rare Earth will be presenting at the Murdock Capital-Discovery Investing "Critical Metals-Rare Earth Metals Symposium" in New York City February 3rd.
This press release may contain forward-looking statements about the business, financial condition and prospects of the Company. Forward-looking statements, can be identified by the use of forward-looking terminology such as "believes," "projects," "expects," "may," "goal," "estimates," "should," "plans," "targets," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward looking statements in this press release include, without limitation, the Company's expectations of the value per metric ton of its mineral deposits, the percentage of heavy rare earth and ratio of heavy to light REE, the amount of metric tons contained in the Round Top rhyolite, ability to mine and economically process our mineral deposits, ability to sell our mineral product, expansion strategies, access to capital, access to joint venture partners, competition, regulatory risks, and other performance results. These statements are made to provide the public with management's current assessment of the Company's business. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this press release speak only as of the date of this press release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this press release.
About Texas Rare Earth
Texas Rare Earth Resources Corp.'s primary focus is developing its Round Top Mountain rare earth-beryllium-uranium deposit. Texas Rare Earth's common stock trades on the Pink OTC Market under the symbol TRER.
SOURCE Texas Rare Earth Resources Corp.
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