VANCOUVER, BC--(Marketwired - May 02, 2017) - Canada Rare Earth Corp. (TSX VENTURE: LL) ("Canada Rare Earth" or the "Company") is pleased to announce continuing and increasing momentum in its concentrate trading business.
Canada Rare Earth completed the purchase and sale of 180 metric tons of the 310 metric tons of rare earth concentrate announced on March 21, 2017 and, as a result, collected $386,000 of gross proceeds. The Company also recently collected $24,000 of fees generated from providing rare earth supply chain advisory services in the December 31, 2016 fiscal quarter. Costs associated with the completed sale total $335,000.
We expect to complete the purchase and sale of 90 metric tons of rare earth concentrate within two weeks.
The back order balance of 40 metric tons and an additional 350 metric tons of concentrate is scheduled for shipment in June 2017.
Peter Shearing, Chief Operating Officer of Canada Rare Earth explained, "These transactions are all part of the master agreement we announced on September 8, 2016 for a total of 16,500 metric tons over a 36 month period. We are pleased with the current momentum and acceleration under this arrangement as we now expect to exceed the 500 metric ton monthly target from this source."
Tracy A. Moore, Chief Executive Officer of Canada Rare Earth remarked, "The quality of the concentrate meets and in some cases exceeds our requirements and importantly is to the specifications set by our client. We continue to seek additional sources of concentrate for immediate and longer-term purposes as our customer base is now requesting additional volumes of concentrate from us. The trading transactions are all profitable and contribute positive cash flow to our company."
Financial amounts in this news release are stated in Canadian dollars.
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 integrated business within the global rare earth industry. Our immediate key focus is to generate revenues and positive cash flow from a variety of profit centres 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."
For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.