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News Release - |
Harvest Gold to raise $600,000 with
Bolder Investment Partners
September 13, 2005
Rare Earth Metals Corp, (REM – TSX.V), September 13, 2005, (the “Company”)
announces that it has engaged Bolder Investment Partners as agent to carry out a
brokered private placement of 6,000,000 units at $0.10 per unit for gross
proceeds of $600,000 to fund its newly formed subsidiary, Harvest Gold
Corporation (“Harvest Gold”). The units will be comprised of one common share
and one share purchase warrant with each such warrant entitling the holder to
acquire a further common share of Harvest Gold at a price of $0.20 for a term of
two years. The two year term is subject to a written expiry notice provision
triggered by the stock trading at or above a weighted average trading price of
$0.35 for 20 consecutive days. Upon such written notice from the company, the
warrant will expire 30 days from the date of that notice.
Harvest Gold is currently a wholly owned subsidiary of Rare Earth Metals formed
to hold its gold and gold-silver properties. As detailed in the Company’s news
release of June 2, 2005, it is proposed that Harvest Gold will be spun off as a
new public company by way of a plan of arrangement (the “Arrangement”). A
Shareholders’ meeting to approve the Arrangement has been set for October 7,
2005. This private placement is being undertaken to enable Harvest Gold to meet
the minimum listing requirements for a Tier 2 issuer on the TSX Venture
Exchange. Closing of the private placement is anticipated to occur immediately
prior to the completion of the Arrangement. All monies raised will be held in
trust until all necessary approvals are given and Harvest Gold completes its
listing on the TSX Venture Exchange.
As agent, Bolder Investment Partners will receive a cash commission equal to 8 %
of the gross proceeds of the private placement and brokers warrants equal to 10
% of the total number of units sold, each such warrant entitling the holder to
acquire one common share of the Company at a price of $0.20 for a term of 2
years.
Closing of the private placement remains subject to regulatory acceptance.
The placement will be made pursuant to prospectus exemptions, including the
Offering Memorandum exemption.
Proceeds of the placement will be applied to fund exploration on the Company’s
Longstreet Mine property located in Nye County, Nevada, USA, to the costs of the
proposed reorganization and for general working capital.
On behalf of the Board of Directors,
John Roozendaal B.Sc
President, CEO & Director
Rare Earth Metals Corp.
For more information about Rare Earth Metals Corp.
please review the company’s website
www.RareEarthMetals.net
or speak with a Company representative toll free 866 816 0118 or by emailing
info@rareearthmetals.net
The TSX Venture Exchange has not reviewed this press release and does not
accept
responsibility for the adequacy or accuracy of this
release.
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