Rare Element Resources Implements Cost Reduction Measures

Rare Element Resources (NYSE MKT:REE,TSX:RES) will take additional steps to reduce ongoing cash expenditures in light of weak market conditions. These will include significant staff reductions, consolidation of facilities, sale of non-essential equipment and assets, as well as delisting its common shares from the Toronto Stock Exchange.
As quoted in the press release:

The Company has applied for voluntary delisting from the TSX and expects to delist its common shares from the TSX on or about December 31, 2015. The Company intends to continue the listing of its common shares on NYSE MKT under the ticker “REE”. The Company decided to take this action after considering on-going costs and expenses, both direct and indirect, associated with having its common shares listed on the TSX, and the limited share trading volume on the TSX relative to its share volume on the NYSE MKT, which is where the vast majority of its common shares are traded.

Rare Element Resources president and CEO, Randall Scott, said:

We strongly believe in the strategic importance of the Bear Lodge Project and its obvious role as a cornerstone to re-establishing a domestic rare earth supply chain. Unfortunately, the rare earth market continues to suffer from many of the short-term issues impacting the greater global resource market. When one couples this with continued uncertainty around the timing and the final requirements of our DEIS, taking these cost-cutting steps is the right business decision for our shareholders. We are hoping to retain the talents of our impacted employees, with many of them having agreed to remain available for consulting work as needed.

Click here for the full press release.