Canada Rare Earth to Provide Business Services and Receives Ownership Participation Right
Canada Rare Earth to Provide Business Services and Receives Ownership Participation Right to a Mechanically Complete, Full Spectrum Rare Earth Separation Refinery
September 29, 2014
Canada Rare Earth Corporation ( "Canada Rare Earth" or the "Company" ) ( TSX.V: LL ) is pleased to advise that it has been engaged to provide corporate finance, strategic and business development services for a mechanically complete, full spectrum rare earth separation refinery built in Laos. The Company’s mandate is for 12 months plus automatic extensions to close specified milestones.
The rare earth separation refinery (the “Refinery”) is situated in Laos on 7 hectares of land and is housed in approximately 24,000 square metres of buildings and facilities. The current installed equipment configuration has the capacity to separate 3,000 metric tons of rare earth oxides annually with purities as high as 99.995% depending on customer requirements. The existing infrastructure is sufficient and has been built to accommodate a second separation line thereby doubling capacity. The Refinery was designed, built and financed by a Canada Rare Earth affiliate with over 10 years of directly related experience in rare earth refinery design, construction and very importantly, operations. Applications for final approvals and permits for the Refinery are in process.
The mandate of Canada Rare Earth is fourfold:
- seek investors who have a strategic interest in rare earth industry and who recognize the critical role of separation refineries in the supply chain, particularly those refineries capable of separating heavy and critical elements to high levels of purity;
- seek long term purchasers of the 3,000 metric tons of resulting oxides from the Refinery;
- seek alternate long term supply of 5,000 metric tons of rare earth concentrate with a particular emphasis on heavy and critical elements; and
- provide strategic advice regarding international commerce and logistics.
In consideration, Canada Rare Earth will receive a retainer of US$25,000 per month for the duration of this mandate, and success fees for securing industry related strategic investors, customers for the separated oxides and for securing a source of rare earth concentrate having an emphasis on heavy and critical elements.
Canada Rare Earth additionally has the option to purchase up to 20% of the equity of the Refinery on the same terms and conditions as incoming strategic investors for a period of twelve months after the closing(s) so long as the Refinery’s current shareholder's interest does not fall below a 40% equity position in the Refinery.
Tracy A. Moore, Chief Executive Officer of Canada Rare Earth explained: "The completion of our affiliate's Refinery in Laos is truly a remarkable feat. To the best of our knowledge, this is the first full scale, full spectrum refinery built outside of China in 20 years. The Refinery is capable of separating a complete array of commercially traded rare earths into individual oxides with the high purity levels that customers require for today’s products. The Refinery is based on proven know-how and over 10 years of directly related experience by its owner. Canada Rare Earth's association with this refinery adds tremendous credibility to our vertical integration strategy. The Refinery, once permitted and commissioned, will be a leading supplier outside of China of consistent, quality rare earths for international manufacturing companies and their supply networks."
Mr. Moore continued: "The Laos refinery was built to process 5000 tons per year of monazite rare earth concentrate and with some relatively minor capital expenditures can be adapted to also process xenotime rare earth concentrate. Our study of the Mata Azul property in Brazil (see news releases dated September 22, 2014 and February 24, 2014) indicates that the monazite and xenotime concentrate to be sourced from the Mata Azul property would be a good fit in terms of quantity and characteristics for the Laos refinery's capabilities. In the alternative, we have a readily available supply of monazite concentrate from other sources."
ON BEHALF OF THE BOARD OF DIRECTORS OF CANADA RARE EARTH CORP:
Tracy A. Moore, CEO & President
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." The information contained herein contains "forward--looking statements" within the meaning of applicable securities legislation. Forward--looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward--looking statements." Forward--looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-- looking statements, including, without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of legal proceedings; political and regulatory risks associated with mining, exploration and operations; risks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill and test results, the geology, grade and continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations; risks related to commodity and other price fluctuations; and other risks and uncertainties related to the Company's prospects, properties and business detailed here and elsewhere in the Company's disclosure record. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward--looking statements. Investors are cautioned against attributing undue certainty to forward--looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections.
For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Tracy A. Moore CEO & President
(604) 638 - 8886