Business
Canada Rare Earth Receives Strong Financial Commitment from Talaxis through a $1,500,000 Convertible Loan Facility
VANCOUVER, BC--(Marketwired - January 30, 2018) - Canada Rare Earth Corp. ("Canada Rare Earth" or the "Company") (TSX VENTURE: LL) is pleased to announce that i
About this update from Canada Rare Earth Corp.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - January 30, 2018) - Canada Rare Earth Corp. (\"Canada Rare Earth\" or the \"Company\") (TSX VENTURE: LL) is pleased to announce that it has entered into a $1,500,000 convertible loan facility with Talaxis Limited (\"Talaxis\" or the \"Lender\") as a component of the strategic business and financing arrangements with Talaxis announced on January 25, 2018. Tracy A. Moore, Chief Executive Officer of Canada Rare Earth explained: \"We are very pleased to announce that the Company has entered into a $1,500,000 convertible loan financing with Talaxis (the \"Loan\"). The Loan is convertible into 19,666,667 shares of the Company over the next 12 and 24 months at prices averaging 7.6 cents per share and 9,000,000 warrants exercisable at a minimum of 10 cents per share. Management of Canada Rare Earth, over the past four years, has avoided issuing shares from treasury unless strong strategic reasons were evident and which would deliver shareholder value. With Talaxis we are definitely willing to issue shares because of our multi-faceted strategic business relationship. The arrangement will allow Canada Rare Earth to focus on what we do best: developing new sources of raw products, developing midstream processing facilities and customer relations. Talaxis is a perfect ally for us.\" Terms of the loan facility are summarized as follows: - $800,000 is repayable by the Company 12 months from the date the funds are advanced (the \"Advance Date\") and $700,000 is repayable by the Company 24 months from the Advance Date; - The Lender may convert, in whole or in part, the Loan into units consisting of one common share plus one-half of a warrant (the \"Units\"), to the extent the Loan has not been repaid, as follows: $300,000 at $0.05 per Unit within 12 months of the Advance Date resulting in the issuance of 6,000,000 shares and 3,000,000 warrants; $500,000 at $0.075 per Unit within 12 months of the Advance Date resulting in the issuance of 6,666,667 shares and 3,333,333 warrants; $533,333 at $0.10 per Unit within 24 months of the Advance Date resulting in the issuance of 5,333,330 shares and 2,666,667 warrants; $166,667 at $0.10 per share within 24 months of the Advance Date resulting in the issuance of 1,666,670 shares and no warrants; - Each full warrant is exercisable for 30 months from the Advance Date into one sh...