VANCOUVER, BC --(Marketwired - November 09, 2016) - Canada Rare Earth Corporation ("Canada Rare Earth" or the "Company") (TSX VENTURE: LL) is pleased to announce significant progress towards the permitting of the completed, full capability rare earth separation refinery (the "Refinery") described in our news release of May 9, 2016.
Peter Shearing, the Chief Operating Officer of Canada Rare Earth, explained, "We have identified a source of concentrate feedstock for the Refinery which eliminates a major impediment to the permitting process, and we have gained the confidence of international businesses and governments that are supporting our permitting approach."
The Refinery, based on the design of other successful operating facilities, is capable of separating concentrate into the entire spectrum of commercially traded, light and heavy rare earth elements to high levels of purity. The Refinery is intended to become a core aspect in the Company's vertical integration strategy and operations. Significant and sincere interest has been generated from prospective purchasers for the Refinery's products.
As set out in the May 9th news release, Canada Rare Earth entered into an agreement (the "Agreement") to purchase 60% of the issued and outstanding shares (the "Shares") of the company which owns the Refinery, subject to certain terms and conditions including: receiving an operating permit within 6 months of the date of the Agreement; and paying a specified purchase price for the Shares within 12 months of the date of the Agreement. Based on Canada Rare Earth's demonstrated progress the deadline for obtaining the operating permit has been extended to February 9, 2017, for no additional consideration.
There can be no assurance that either or both of the operating permit or the necessary funding for the purchase of the Shares will be achieved within the specified time frames.
On behalf of the Board
Tracy A. Moore, CEO and Peter Shearing, COO
ABOUT CANADA RARE EARTH CORP.
Canada rare earth is developing an international vertically and horizontally 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.
"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 that 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.
In addition to risks associated with forward looking statements there are risks associated with the proposed acquisition of the Shares including risks relating to the ability of the Company to raise sufficient funds required to purchase the Shares. Further, there can be no certainty that the required permits will be obtained to enable the Refinery to commence operations as well as risks associated with carrying on business and owning assets in a non-Western country.
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 A. Moore
Chief Executive Officer
Chief Operating Officer
Tel: (604) 638-8886