VANCOUVER - Canada Rare Earth Corp. ('Canada Rare Earth' or the 'Company') (TSX.V: LL) and its co-investors in the jointly held property in the Bom Futuro area of Brazil, have agreed to appoint the Company as Operating Manager.
The Company will have full management control over the project to lead, develop, finance, and operate the 9,960 hectares that is proven to contain cassiterite and known to contain additional valuable minerals including rare earths, zircon, ilmenite, tungsten, and iron.
The Property contains many of the mineral commodities included in the US Geological Survey's recently proposed updated list of critical minerals (https://www.federalregister.gov/documents/2021/11/09/2021-24488/2021-draft-list-of-critical-minerals). Minerals that are vital to national economics and the US national security interest remain in short supply and vulnerable to supply disruptions.
Canada Rare Earth and co-investors (the 'Shareholders') entered into a multi-faceted agreement in December 2019 with respect to the Property with salient terms set out in our news releases dated February 12, August 1, October 28, December 19, 2019, and January 22, 2020.
Tracy A. Moore, Chief Executive Officer, explained, 'The Covid-19 pandemic put the Project on hold for nearly one year, however, we are now moving forward in a determined and aggressive manner. The Shareholders unanimously agreed that Canada Rare Earth will take management control and lead the development, financing and eventually the operation of the Property. Important factors leading to the decision include Canada Rare Earth's historical and current business activities in-country, and its network of experienced and capable team members, consultants and contacts.'
'There are three key aspects to the Property', Mr. Moore continued. 'First, the massive stockpile of tailings, accumulated from 30 years of mining covering 590 hectares at surface; second, is our right of first refusal to the mineral rights of the undisturbed ground underlying the tailings stockpile and in the contiguous 9,370 hectares and third, our authorization to utilize existing permits and licenses necessary to process the tailings, carry on mining operations and conduct further exploration. These three aspects are why we are so excited and confident that the project will be a significant commercial success.'
Peter Shearing, Chief Operating Officer of Canada Rare Earth, emphasized, 'We view these tailings as an integral component to our proprietary sources of minerals for our integrated supply chain of rare earth and critical mineral products. We believe the capital cost of the contemplated operations will be less than conventional hard rock mining as the contents of the stockpile is in a friable, granular form and our team has the experience and ability to process the stockpile through cost effective operations and to deliver desired product streams to our continually expanding customer base.'
'It is our strong intention to maintain direct control in the development, funding and operations of the Property and we are open to considering a variety of financing and operating structures including project financing, joint ventures and operating partnerships,' Mr. Shearing continued.
Canada Rare Earth's confidence in the potential of the Property is underpinned by a previously published report (NI 43-101 Technical Report, Preliminary Economic Assessment, Bom Futuro Tin Project, Rondo^nia, NW Brazil - dated 7 December 2017). The report pertained to the overall Bom Futuro area which included the Property and was prepared by qualified, independent persons. Although the report is historical and the scope was limited to only studying the cassiterite content of the stockpile, it concluded that there were significant Indicated and Inferred amounts of Tin (SnO2). The price of tin has doubled since the report was written. The Company's decision on proceeding with the project is subject to several factors including the decision to operate and/or explore and the ability to raise finances on acceptable terms.
About Canada Rare Earth Corp.
Canada Rare Earth is developing an international supply network based on proprietary, affiliated and third-party mineral sources and existing, developing and planned processing facilities. We are generating revenues and gross profits from the sale of rare earths and connected mineral products.
Contact:
Tracy A. Moore
Email: tmoore@canadarareearth.com
CANADA RARE EARTH CORP. 