Rare Earth Metals Inc. Outlines Rare Earth Vertical Integration Corporate Strategy skip to content

Vancouver, BC – Rare Earth Metals Inc.  (“Rare Earth Metals”, “REM” or the “Company”) (TSX-V: RA; OTCQX: RAREF). Management of the Company is pleased to report an outline of its plans to develop a vertically integrated supply chain in the near future, in the context of the issues facing the rare earth industry. The solution has the potential to position the Company as an industry leader in the rare earth sector by bridging the lack of prospective customer problem facing exploration companies with the lack of diversified supply facing major manufacturing companies.

The Refining Problem

The global rare earth industry currently has certain complex issues facing it and needs solutions involving much more than simply having some 200 companies exploring for rare earth deposits. Rare Earth Metals Inc. is shifting its business focus from exploring for rare earths to developing a vertically integrated supply chain connecting exploration to mining/concentration to separation/refining to major international customers of the individual rare earths. Currently the components of the supply chain are disjointed because the vast majority of the critical separation/refining capability is found primarily in China. As a consequence of the domination by China of the refining stage, manufacturing companies whose products depend on rare earth supply have four choices when sourcing these critical elements:

  1. Continue to obtain refined rare earths from China;
  2. Manufacture products in China;
  3. Design products without or with minimal use of rare earths (impossible in some cases and reduces product performance characteristics in many others); or
  4. Attempt to source rare earth materials from one of the very few refineries situated outside of China.

The volatile and restrictive challenges inherent in the supply chain often result in companies making sub-optimal strategic and product decisions.

The Solution

As a first step, the Company has retained CEC Rare Earth Corporation (“REC”) to assist with developing a vertical integration strategy and plan alternatives. Details of the strategy, business plan and implementation program will be developed over the coming months as REC completes its initial consulting assignment and the Company and REC collaborate on a specific path forward. The Company intends to implement a vertically integrated strategy with the following aspects in order to deliver optimal rare earth product mixes within a short time frame to market:

Identify potential rare earths sources:

  1. Mines (in addition to assessing mines owned by others, the existing Company properties will be assessed as a part of the strategy and could provide lucrative long term supply in the vertically integrated model);
    1. Mixed rare earth concentrates from other processing facilities.
    2. Recycled materials, and
  2. Full capability rare earth refining/separation facilities in stable and suitable geographic locations; and
  3. Enhance relationships with a number of top tier major international companies which depend on rare earths for their market leading products.

As part of the engagement, REC will assist Rare Earth Metals in determining the best sectors and relationships to pursue within the rare earth industry and will conduct prioritization studies to determine prospective supply chain partners with compatible timing, volumes and elements which are looking for longer term solutions.

About REC

REC’s business involves designing, building and operating rare earth refineries with the capability of separating the full spectrum of light and heavy rare earths. Having built multiple separating rare earth refineries, REC’s subcontractors have demonstrated the technical expertise required for the refinery stage of the integrated solution. Recently REC’s subcontractors substantially completed, outside of China, a “full spectrum” rare earth refinery having a 3,000 MT per year capacity.

REC has compiled two databases: (i) exploration companies and (ii) international purchasers of separated rare earths. The Company will have full access to these databases as part of its relationship with REC.

REM is an important client and strategic partner for REC in the implementation of its business plan and deployment of REC’s expertise in the rare earth sector. REC’s commitment to its relationship with the Company is reflected in the recent appointment of REC’s former CEO as the CEO of the Company and two of REC’s senior personnel having joined the Company’s board of directors.

About Rare Earth Metals Inc.

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.


“Tracy A. Moore”
CEO & President

“Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

For more information on the Company, Investors should review the Company’s filings that are available at www.sedar.com.


Rare Earth Metals Inc.

Tracy A. Moore
CEO & President
Phone: (604) 685-5535
Email: moore@rareearthmetals.ca

Michael Stares
Phone: (807) 623-6840

Corporate Communications:
Matt Witiluk, C.A.
Phone: (807) 623-6840
Fax: (807) 623-9526
Email: matt@rareearthmetals.ca

Standard and Poor’s Customer Contact:
Richard Albanese
(212) 438-3647
Email: richard_albanese@standardandpoors.com

Standard and Poor’s Media Relations Contact:
Michael Privitera
(212) 438-6679
Email: michael_privitera@standardandpoors.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.

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