Rare Element Resources Ltd (OTCMKTS:REEMF) Has Smart Money Behind It

Today, we are bringing you a new business profile that has been assessed quite a bit lately.It is Rare Element Resources Ltd (OTCMKTS:REEMF), which focuses on the development of rare earth products for technology and defense applications.There are several things to like in the company. First of all, it is a key feature that General Atomics Uranium Resources, LLC, has been buying large amount of shares of the company in 2017. News regarding the stakeholders excited the market in October and August, which pushed up the share price.But, that's not all.Other market participants acquired stakes in January 2017 and made the share price react.Additionally, the company's financial situation is sound and the projects being developed are quite innovative. Photo from rareelementresources.comBefore we provide more details, have a look at the following one year stock chart. It is key that you form your own opinion: 1 year chart for REEMFBusinessRare Element was founded in Canada on June 3, 1999 and is headquartered in Littleton, Colorado. Until February 26, 2016, the company used to trade both in the NYSE MKT as well as the Toronto Stock Exchange. Right now, it is being traded on the OTCQB Venture Marketplace under the ticker symbol "REEMF."The company is focused on the Bear Lodge REE Project located close to the town of Sundance in northeast Wyoming. The project "is one of the highest-grade REE deposits identified in North America and one of the highest-grade europium deposits in the world." Additionally, there is favorable distribution of the remaining critical rare earth elements: "neodymium, praseodymium, dysprosium, europium, terbium, and yttrium. "What are the rare elements?Rare earth elements or REEs are elements that are rarely encountered on the Earth’s surface. They are key in geopolitics and economics, as they are used in many devices that we use everyday. In the company materials, it is exposed very well:

"REEs are used in computers, cellular telephones, television screens, wind turbines, fuel cells, magnetic refrigeration technologies, energy-efficient lighting, petroleum-refining catalysts and numerous other modern specialty technologies including military applications. REEs are also used in hybrid-electric vehicles and all-electric vehicles, many of which contain REE-bearing nickel-metal-hydride batteries and REE “super” magnets within electrical motors and generators." Source

Like it always happens in mining, the share price of REEMF will depend a lot on the supply and demand of these rare elements. Shortages in supply could make the share price increase.But, let's see what the company has developed.In the company materials, we could read that a lot of know-how has been developed inside REEMF. Tests on the appropriate metallurgical processes to recover saleable rare earth products have been done. In addition, the company has filed five patents on its metallurgical innovations.For those who only care about measured and indicated information, the following is the data obtained by the engineers. Please note that the company has already measured 2.7 million tonnes of mineral. The exploratory work has been almost finished: Mineral Resources estimates were developed by Alan C. Noble, P.E. of Ore Reserves Engineering from Rare Element Resources Ltd OTCMKTS:REEMFRecent DevelopmentsThe share price has been driven by the appearance of new market participants.On January 6, 2017, Sabby Healthcare Master Fund, Ltd. and other affiliates of this fund released a filing noting a significant stake in the company. The share price seemed to run up to more than $0.5 per share from below $0.1. It was an extraordinary spike accompanied by large amount of shares exchanged; more than one million shares exchanged some days. We believe that market participants then sold shares to profit from the share price creating a share price decline.But, that was not all.On August 30, 2017, General Atomics Uranium Resources, LLC, signed an agreement with the company and acquired 5.9% of the total outstanding shares. The share price spike was significant this time as well. It was pushed up from $0.10 to close to $0.20 and more than 0.5 million shares were exchanged.We believe that the new market participant increased the demand for the stock that caused the increase in the stock price.Additionally, on October 3, 2017, another press release was received by the market. A subsidiary of the same market participant had acquired even more shares of the company. Thus, from $0.2, the share price went up to $0.4.We believe that the announcement shows two things. Firstly, more and more people in the market are interested in the company's project, as these minerals will be needed for the development of technology, green energy, and defense applications.Moreover, the new market participants will contribute to the company's future success. The investment means a lot of new cash, $4,752,000 , which we appreciate. Additionally, we believe that General Atomics Uranium Resources, LLC, will help develop the project.Check the following words of Randall J. Scott, President and CEO of Rare Element, if you don't believe us:

“We are very pleased to have Synchron, an affiliate of General Atomics, as a key investor in the Company and the Bear Lodge Rare Earth Project. With this investment and the valued input of the investor’s director-nominees, the Company will develop and execute on a plan to progress the project.” Source

ConclusionCurrently trading with a market cap of $17.4 million, REEMF is an exciting story among small caps. With $0.3 million in cash, $1.1 million in total assets and $0.8 in total liabilities, the financial situation seems solid. The company has some serious money as shareholders and this certainly puts REEMF in play. To sum up, there is a lot to like with REEMF.We will be updating our subscribers as soon as we know more. For the latest updates on REEMF, sign up below!Image courtesy of Karl-Ludwig Poggemann via FlickrDisclosure: We have no position in REEMF and have not been compensated for this article.