Business
Canada Rare Earth Purchases Mineral Sands for Future Source of Rare Earths
Vancouver, British Columbia--(Newsfile Corp. - December 19, 2019) - Canada Rare Earth Corp. (...
About this update from Canada Rare Earth Corp.
[{"type":"text","content":"Canada Rare Earth Purchases Mineral Sands for Future Source of Rare EarthsVancouver, British Columbia--(Newsfile Corp. - December 19, 2019) - Canada Rare Earth Corp. (TSXV: LL) (\"Canada Rare Earth\" or the \"Company\") is pleased to announce that CanBras Minerals Ltda., a wholly owned subsidiary of the Company's subsidiary CREC South American Holdings Corp. (\"CREC SAH\") closed on a multi-faceted agreement (the \"Agreement\") including:purchasing tailings produced from over 25 years of historical mining and any future mining activities (the Tailings\") conducted on a 9,960-hectare property leased by the Company for 26 years (the \"Leased Property\"); The existing Tailings, situated on 590 hectares of the Leased Property, contain rare earths, cassiterite, ilmenite and zircon;the right to utilize existing permits and licenses necessary to process the tailings;the right of first refusal to purchase the mining rights related to the 9,960 hectares;consideration to the vendors/lessors (the \"Vendors\") of US$11 million (the \"Purchase Price\") over ten years: US$600,000 in January 2020 and US$100,000 per month starting September 2020 and continuing through April 1, 2029; andno royalties are payable by CanBras.Concurrently, Canada Rare Earth has arranged with two other parties (the \"Investors\") to provide 80% of the Purchase Price to acquire an 80% equity interest in CREC SAH which owns 100% of CanBras. CREC will be responsible for funding 20% of the Purchase Price and will retain 20% ownership of CREC SAH. Shareholders of CREC are not expected to suffer any dilution as a result of this transaction. The Investors have identified purchasers for a minimum of 48,000 MT of mixed concentrate per year from the operations.Together, Canada Rare Earth and the Investors are negotiating with one or more groups (the \"Operators\") to process the tailings and produce the mixed concentrate. The Operators would provide all necessary operating working capital, all equipment and personnel and in return receive a percentage of the proceeds depending on the yield of the operations. Current plans indicate that processing operations could commence in 10 to 12 months. Based on past processing operations on the Leased Property and discussions with two prospective Operators who have attended the site on multiple occasions to study the Tailings, . The Comp...