skip to content

Results of Operations for the Six Months Ended September 30, 2015

 

December 3, 2015

 

VANCOUVER, BRITISH COLUMBIA - Canada Rare Earth Corp. ("Canada Rare Earth" or the "Company") (TSX.V: LL) is pleased to provide a highlight of the financial and operating results of business activities for the six months ended September 30, 2015 ( the “Six Months”). The complete set of financial statements and management discussion and analysis for the Six Months can be found on our website (www.canadarareearth.com) and SEDAR.com.

 

During the Six Months, Canada Rare Earth generated $92,363 of revenues as consideration for providing corporate finance, strategic and business development services for a mechanically complete, full spectrum rare earth separation refinery situated outside of China. The engagement completed in September as scheduled with total fees earned and collected of $285,030 and the owner of the refinery and Canada Rare Earth’s management team are discussing the scope and terms of the next mandate based on knowledge gained from the first engagement.

 

Cash expenses and changes in working capital during the Six Months totaled $251,865 (an outflow averaging approximately $42,000 per month) resulting in a net cash outflow relating to operating activities of $159,502 (approximately $27,000 per month on average). The Company also spent $10,623 on the exploration and evaluation of assets.

 

Net working capital as at September 30, 2015 amounted to $701,379.

 

Excluding write-down of exploration and evaluation of assets and share-based payments the Company had a net loss for the Six Months of $229,029.

 

Three key accomplishments during the Six Months included:

-       closing on the purchase of assets and contracts from CEC Rare Earth Corporation (“REC”) including a joint venture agreement to design, build and operate rare earth separation refineries ( see below). The assets and contracts complement Canada Rare Earth’s strategy of establishing a vertically and horizontally integrated supply chain within the rare earth industry.

-       furthering the joint venture with a leading designer, builder and operator of rare earth processing facilities. The joint venture positions Canada Rare Earth with one of the most capable engineering firms in the global rare earth sector. Together we are considering prospective refinery projects in Southeast Asia and South America.

-       entering into a  distribution agreement with a refinery uniquely specializing in the production of extremely pure rare earth products. Canada Rare Earth has the exclusive right to market, distribute and sell the products in Europe, the Americas, Russia and India and the non-exclusive right in Asia.

 

Tracy A. Moore, CEO of Canada Rare Earth explained: “during the past three years the market for rare earths has been, to say the least, volatile. Prices increased in some cases ten to forty times and then dropped dramatically to levels seen prior to the spike. The result was that it became difficult to arrange sales and purchases of rare earths and to determine financial models and capital expenditure plans for refineries. Now that market prices are less volatile it is becoming easier to establish budgets and develop models. With our exclusive marketing rights from a source for very high quality and sought after products we expect to execute various trades of rare earths in the near future. In addition, with our participation in the design, build and operations joint venture, going forward we anticipate being able to secure, an interest in various projects with our joint venture partner.”

 

The Company is also pleased to announce the appointment of Gordon J. Fretwell as a director of the Company. 

 

ABOUT CANADA RARE EARTH CORP.

 

Canada Rare Earth Corp. is developing an international integrated business within the global rare earth industry. Our key focus is to generate revenues and positive cash flow from a variety of profit centers in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms. We are in the process of establishing our own mining, concentrating and refinery capabilities in addition to working with affiliated and third party organizations.

 

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. 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, interested parties should review the Company's filings that are available at www.sedar.com.

 

FOR FURTHER INFORMATION PLEASE CONTACT:

 

Tracy Moore

Chief Executive Officer & President 
canadarareearth%23com|tmoore

Peter Shearing

Chief Operating Officer 
canadarareearth%23com|pshearing

(604) 638-8886

Website:  www.canadarareearth.com

 

 
To Top