Texas Rare Earth Resources Corp. Expands Financing
Texas Rare Earth Resources announces that it has expanded its equity private placement financing announced February 1 by closing on an additional $2.0 million to bring the total capital raised to $4 million. The additional $2 million was provided by an institutional investor. The funds will be used primarily to advance our Rare Earth-Beryllium-Uranium Project at Round Top Mountain in Hudspeth County Texas. This additional investment represented an issuance of 800,000 shares for a purchase price of $2.50 per share and a five year warrant to purchase 800,000 shares of common stock at an exercise price of $2.50 per share. Additionally, we granted the investor a 120 day option to purchase up to 3,200,000 shares of our common stock at a purchase price of $2.50 per share, with 100% warrant coverage.
Dan Gorski, CEO of Texas Rare Earth Resources, commented, “Texas Rare Earth is very pleased to announce this expansion of our previously announced round by $2 million. This new investment by a resource focused institutional investor strengthens our balance sheet and allows us further flexibility as we move forward in developing our rare earth-beryllium-uranium project at Round Top.”
