Press release from TheNewswire.ca
Canada Rare Earths Completes Non-Brokered Private Placement
Friday, April 13, 2012
Canada Rare Earths Completes Non-Brokered Private Placement11:59 EDT Friday, April 13, 2012(via Thenewswire.ca) Vancouver, British Columbia - April 13, 2012 - Canada Rare Earths Inc. ("Canada Rare Earths" or "the Company") (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) announces that it has closed the non-brokered private placement (the "Financing") previously announced on March 5th & 8th, pursuant to TSX.V acceptance obtained on April 11, 2012. The Company issued 7,000,000 units (the "Units") at a price of $0.10 per Unit for gross proceeds of $700,000. Each Unit is comprised of one common share and one non-transferable share purchase warrant (the "Warrants"), each Warrant entitling the holder to purchase one additional common share of the Company at a price of $0.20 per share, for a period of two years from the date of closing. Finder's fees of $32,375 and 308,000 warrants ("Finder Warrants") were paid to qualified parties. The Finder Warrants are exercisable at a price of $0.20 per share for a period of two years from the date of closing. The securities issued in connection with the Financing are subject to a hold period and may not be traded until August 14, 2012, pursuant to applicable Canadian securities laws and the policies of the TSX Venture Exchange. The proceeds of the Financing will be used to advance the Company's graphite projects and for general working capital. Chad McMillan, a director and the President and Chief Executive Officer of the Company, acquired securities under the private placement through a company wholly owned by Mr. McMillan. His participation is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101. The purchase is exempt from the formal valuation and minority shareholder approval requirements of Multilateral Instrument 61-101. For more information on Canada Rare Earths Inc., please visit www.canadarareearths.com or call 604.685.5851. 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. On Behalf of the Board, "Chad McMillan" President & CEO Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the use of proceeds from the offering, (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, 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, and delays in obtaining or inability to obtain required government or other regulatory or shareholder approvals. 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) 2012 Thenewswire.ca - All rights reserved.