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.