Press release from TheNewswire.ca
CANADA RARE EARTHS COMPLETES NON-BROKERED PRIVATE PLACEMENT; APPOINTS VP CORPORATE DEVELOPMENT
Monday, March 28, 2011
CANADA RARE EARTHS COMPLETES NON-BROKERED PRIVATE PLACEMENT; APPOINTS VP CORPORATE DEVELOPMENT05:57 EDT Monday, March 28, 2011(via Thenewswire.ca) Vancouver, British Columbia, Canada - March 28, 2011 - Canada Rare Earths Inc. (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) ("Canada Rare Earths" or the "Company") is pleased to announce that it has closed the non-brokered private placement previously announced in the Company's February 23, 2011 news release, subject to final regulatory approval. The Company issued 3,481,130 units (the ?Units') at $0.65 per Unit for gross proceeds of approximately $2,262,735, with finder's fees payable of $146,652. Each Unit is comprised of one common share and one half of one share purchase warrant (the ?Warrants'), each full Warrant entitling the holder to purchase one additional common share of Canada Rare Earths at a price of $0.90 per share, for a period of two years from the date of closing. If, during the exercise period of the Warrants, the average market price of the Company's common shares is $1.25 or higher for 20 consecutive trading days, the Company, at management's discretion, may accelerate the expiry time of the Warrants to 20 calendar days from the date written notice of the same is provided to the holders. The securities issued in this private placement are subject to a hold period and may not be traded until July 22, 2011 pursuant to applicable Canadian securities laws and the policies of the TSX Venture Exchange. The proceeds of the private placement will be used to explore the Company's Goeland rare earth property, and for general working capital. Meanwhile, the Company is also pleased to announce that it has appointed Peter Watson as Vice President, Corporate Development. Peter has over 30 years experience in the capital markets and media. Most recently he was Vice President, Investment Banking of NovaDx Ventures Corp., a Vancouver based investment fund and merchant bank. He has held officer and senior management positions in international advertising agencies and media companies such as Foote Cone Belding, and Omni/Astral Outdoor Media and has played key corporate finance roles in the growth of numerous natural resources, technology, and media companies. Peter has extensive financial industry contacts, and presently sits on the boards of a number of public and private companies. About Canada Rare Earths Canada Rare Earths is a growth company focused on the exploration and development of its 100% owned Goeland Rare Earth Project located 215 km north of Val d'Or in the Abitibi region of Quebec, straddling Geomega's (TSX-V: GMA) Montviel property on the east and west. The Company's experienced Board of Directors and Management Team have identified two high priority sectors for diamond drilling, and are focused on executing an initial exploration program as soon as possible. For more information on Canada Rare Earths, please visit www.canadarareearths.com or call 604.685.5851. On Behalf of the Board, CANADA RARE EARTHS INC. "Chad McMillan" President & CEO Neither 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. All of the above is subject to TSX.V and regulatory acceptance. Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the use of proceeds from the private placement (the ?Offering'), constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain regulatory approval of the Offering and is otherwise able to complete the Offering and that actual results of the Company's exploration activities will be consistent with those expected by management. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Offering and to Canada Rare Earth's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks include, among others, financing risks, regulatory risk, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or inability to obtain required government or other regulatory approvals and inability to complete the Offering. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. Copyright (c) 2011 Thenewswire.ca - All rights reserved.