Dec 3 2010
Quantum Rare Earth Developments Corp. (TSX VENTURE:QRE)(PINK SHEETS:QREDF)(FRANKFURT:BR3) has announced receipt of final acceptance from the TSX Venture Exchange for the acquisition of all of the issued and outstanding shares of 0805904 B.C. Ltd. 0805904 B.C. Ltd. owns all the issued and outstanding shares of Elk Creek Resources Corp., a private Nebraska corporation which holds exploration lease and option to purchase agreements with the underlying property owners, to explore, evaluate and acquire the Elk Creek carbonatite property in southern Nebraska.
The Company has completed the acquisition by way of a three cornered amalgamation and as a result, Elk Creek has become an indirect wholly owned subsidiary of the Company.
Acquisition costs were as follows: the payment of $100,000 in due diligence fees, $490,000 in advance land acquisition costs, a $200,000 option payment, the issuance of 18,990,539 common shares to the shareholders of 0805904 B.C. Ltd. in exchange for their shares; and the payment of all Elk Creek's option payments required by the Landowner Agreements.
Quantum advises that all the above payments have been made and further advises that the share consideration has been issued. A total of 14,630,789 of the 18,990,539 shares issued to the former shareholders of 0805904 B.C. Ltd. are subject to escrow provisions providing for their release over an 18 month period from date of issuance.
A finder's fee of 1,034,348 common shares has been issued to Lockwood Financial Ltd. in connection with the transaction. These shares are subject to a resale restriction of 4 months and 1 day from their date of issuance.
Further information on these transactions is available in the Company's news releases dated May 4, 2010, Sept. 21, 2010, and Oct. 13, 2010.
"We are extremely pleased to have finally completed all the necessary steps to ensure ownership of this extraordinary asset," states Peter Dickie, President and CEO of Quantum. "We anticipate commencing exploration and development activities as soon as possible with the aim of bringing the historic niobium resource up to modern reporting standards and expanding development of both the niobium and rare earth segments of the property."
Source: Quantum Rare Earth Developments Corp.