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USCM Signs Definitive Agreement for Investment into Rare Earth Projects in Montana and Idaho
Vancouver, British Columbia--(Newsfile Corp. - July 26, 2022) - US Critical Metals Corp. ( T...
About this update from Us Critical Metals Corp.
[{"type":"text","content":"USCM Signs Definitive Agreement for Investment into Rare Earth Projects in Montana and IdahoVancouver, British Columbia--(Newsfile Corp. - July 26, 2022) - US Critical Metals Corp. (TSXV: USCM) (\"USCM\") and US Critical Materials Corp. (\"Materials Corp.\") (collectively, the \"Parties\") are pleased to announce the Parties have entered into a definitive agreement, dated July 25, 2022 (the \"Agreement\") whereby USCM, through its wholly owned subsidiary, US Energy Metals Corp., will invest in rare earth projects, including the Sheep Creek Property in Ravalli County, Montana (\"Sheep Creek\") and Lemhi Pass Trail Property (\"Lemhi Pass\") in Lemhi County, Idaho (collectively, the \"Properties\"). USCM has the right to acquire up to a 50% equity interest in US Rare Elements Corp. (\"USRE\"), a newly formed entity that will be assigned a 100% interest in the Properties by Materials Corp., and the option to earn an additional 25% interest for an aggregate total of 75% equity interest in USRE, subject to the mutual approval of the Parties. The Properties are not subject to any form of royalty agreement. The Properties are located in the Montana-Idaho alkalic belt (Gammons, 2020b) and contain at least eleven of the critical risk elements defined by the US Geological Survey. The key elements identified on the Properties include neodymium and praseodymium. The Properties also contain cerium, dysprosium, europium, gadolinium, lanthanum, niobium, scandium, strontium, and gallium (Gammons, 2020a). These elements are critical inputs in the creation of electric vehicle batteries, various essential technologies, and military and defense applications. The majority of rare earth production is currently controlled by the Chinese government and represents a significant national security risk to US interest. Transaction highlights include the following:Expands the portfolio of USCM's assets with rare earth elements and further provides investors diversified exposure to multiple discovery focused projects in well-known mining states in the US. The Agreement provides for USCM to earn-in up to 75% equity interest in the Properties. Positions USCM to earn-in to one of the highest-grade light rare earth projects in the US. Sampling at Sheep Creek has produced average total rare earth elements of 6.8% across 51 historical samples, as discussed in detai...