VANCOUVER, BC--(Marketwired - October 17, 2017) - Canada Rare Earth (TSX VENTURE: LL) is pleased to announce that it has entered into a Letter of Intent ("LOI") to form a joint venture ("JV") with the owners ("JV Partner") of an advanced, prospective rare earth property situated in South America (the "Property") that is owned outright by the JV Partner.
In addition to the JV Partner contributing the property to the JV, initial activities outlined in the LOI include the JV Partner preparing permit applications to allow the mining and processing of ore derived from the Property and the Company selecting, by December 10, 2017, an existing and proven processing technology and system to optimize the processing of material from the Property.
Once the processing system is agreed upon, the parties will finalize a definitive agreement incorporating and expanding on the terms of the LOI. At that point, subject to the completion of a pre-feasibility or feasibility study, the JV will take responsibility for completing the development of the project, including financing, operating the mine, processing material and selling resulting rare earth products.
The JV Partner and Canada Rare Earth will jointly manage the JV. The JV Partner will contribute experience in permitting similar initiatives; and expertise in exploration and mining operations. Canada Rare Earth will contribute access to the various processing systems and undertake commercial activities including marketing and selling the resulting rare earth products.
Tracy A. Moore, Chief Executive Officer of Canada Rare Earth, explained, "this business arrangement is a prime example of the way in which Canada Rare Earth can help commercialize rare earth properties. Typically properties are extensively explored but in order to advance to mine development two key factors must be arranged: (1) a proven ability to process the mine material and (2) the ability to sell the resulting enhanced concentrate and/or oxides in a commercially viable manner. Canada Rare Earth has access to various proven and in-practice processing technologies and approaches and we have direct connections to buyers of concentrates and oxides."
Details of the property and participants will be disclosed in greater detail once the Company identifies the most appropriate technology and system for processing the Property's material and the JV partner has concurred with the selection. The LOI is non-binding on the parties.
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 organization
"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. No assurance that the funding to purchase the Purchase Shares will be raised on reasonable terms or at all and there is no assurance that the permits will be issued in a timely manner or at all."
In addition to risks associated with forward looking statements there are risks associated with the proposed acquisition of the Purchase Shares including risks relating to the ability of the Company to raise sufficient funds required to acquire the Purchase Shares and to finance the SPV. 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 in Southeast Asia.
For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.