Business
Canada Rare Earth Enters Into Hedged Contracts to Purchase and Sell Rare Earth Concentrate
VANCOUVER, BC--(Marketwired - September 08, 2016) - Canada Rare Earth Corporation ("Canada Rare Earth" or the "Company") (TSX VENTURE: LL) is pleased to announc
About this update from Canada Rare Earth Corp.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - September 08, 2016) - Canada Rare Earth Corporation (\"Canada Rare Earth\" or the \"Company\") (TSX VENTURE: LL) is pleased to announce that it has entered into agreements for the purchase and corresponding sale of 16,500 metric tons of rare earth concentrate over a three year period. The initial shipment of 50 metric tons will commence within 30 days and thereafter shipment volumes will increase steadily over a six-month period to 500 metric tons per month and remain at this monthly amount for a further 30 months. The seller, Canada Rare Earth and the buyer are receptive to increasing volumes above 500 metric tons per month. The purchase and sale prices of the inventory are specified for the duration of the contracts. Price adjustments may be requested based on demonstrable and reasonable changes in direct costs and subject to the ability to recover higher costs in the sale to the ultimate customer. Tracy A. Moore, Chief Executive Officer of Canada Rare Earth commented, \"We are very pleased to enter into these hedged contracts between a capable supplier and a customer that has selected our product offering in place of existing supply. The transaction demonstrates our ability to generate revenues despite a challenging market for rare earths. We are working with the selling group to extend product sales beyond this first customer to separation refinery projects we are developing.\" Peter Shearing, Chief Operating Officer of Canada Rare Earth added, \"Our team worked very hard to negotiate a hedged transaction, matching the interests and concerns of both the selling party and our customer, while acting in the commercial best interests of Canada Rare Earth.\" On behalf of the BoardTracy A. Moore, CEO and Peter Shearing, COO ABOUT CANADA RARE EARTH CORP. Canada Rare Earth Corp. 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...