Business
Canada Rare Earth Announces Significant Progress in the Permitting of the Rare Earth Separation Refinery Situated in Southeast Asia
Vancouver, British Columbia--(Newsfile Corp. - September 6, 2017) - Canada Rare Earth Corp.&#...
About this update from Canada Rare Earth Corp.
[{"type":"text","content":"Canada Rare Earth Announces Significant Progress in the Permitting of the Rare Earth Separation Refinery Situated in Southeast AsiaVancouver, British Columbia--(Newsfile Corp. - September 6, 2017) - Canada Rare Earth Corp. (TSX.V: LL) (\"Canada Rare Earth\" or the \"Company\") is pleased to announce it has made significant advancements towards obtaining permits authorizing the commencement of operations of the completed separation facility situated in Southeast Asia (the \"Refinery\").As a result of the progress, the owner of the Refinery (the \"Owner\") and the Company have restructured the agreement for Canada Rare Earth to purchase a majority interest in the company that owns the Refinery (the \"RefineryCo\"), first announced in May 2016.Pursuant to the restructured agreement:Canada Rare Earth will continue to take responsibility for the application for permitsIf and when the permits are issued:Canada Rare Earth will have earned the right of first refusal to sell concentrate to the Refinery to the full extent of the Refinery's requirements;Canada Rare Earth will have earned the right of first refusal to sell products produced by the Refinery to the full extent of production;Canada Rare Earth will have earned the right to purchase a minimum of 60% of the issued and outstanding shares of RefineryCo (the \"Purchase Shares\") for a price to be negotiated between the Owner, the Company and the financiers who facilitate the acquisition of the Purchase Shares based on: market conditions, capabilities of the Refinery, working capital requirements of the Refinery and the amount of funds raised by Canada Rare Earth. Shareholders of the Refinery will be required to contribute to the Refinery's working capital requirements in proportion to their respective equity holdings; andCanada Rare Earth and its financiers will have six months from the receipt of Final Operating Permits to complete negotiations for the purchase of the Purchase Shares, to pay for the Purchase Shares and to contribute to the working capital requirements.Tracy A. Moore CEO of Canada Rare Earth explained, \"Simultaneous with our permitting efforts, we will seek to raise between US$50 million and US$110 million to purchase RefineryCo equity and contribute to the working capital requirements through a special purpose vehicle (\"SPV\") so as not to dilute shareh...