Jan 31 2011
Quantum Rare Earth Developments Corp. (TSX VENTURE:QRE)(OTCQX:QREDF)(FRANKFURT:BR3) has announced that further to the news release dated April 23, 2010 announcing entry into a definitive agreement and subsequent to receipt of approval from the TSX Venture Exchange on January 11, 2011, it closed the merger and plan of reorganization today, effectively acquiring Silver Mountain Mines Corp., a Nevada corporation.
Pursuant to the terms of the Merger Agreement, the Company, together with a wholly-owned Nevada subsidiary of the Company ("Acquisition Corp.") and Silver Mountain carried out the Merger, whereby Silver Mountain merged with and into Acquisition Corp., with Acquisition Corp. carrying on as the surviving corporation under the name "Silver Mountain Mines Corp." All of the Silver Mountain shares have been cancelled and the former shareholders of Silver Mountain have received one share of the Company for each share of Silver Mountain formerly held by such persons. A total of 8,962,173 shares have been issued to the former shareholders of Silver Mountain.
Pursuant to the Merger Agreement and the Exchange approval, the Company issued 410,486 common shares and paid $51,310.80 as a finder's fee to Lockwood Financial Ltd. ("Lockwood") in consideration for services provided by Lockwood with respect to the transaction. Lockwood is not a Non-Arm's Length Party and such common shares have been issued pursuant to an exemption under applicable securities laws.
Silver Mountain, now a wholly-owned subsidiary of the Company, is engaged in the business of mineral exploration in Ontario and in Australia through Northeast Minerals Pty. Ltd., an Australian corporation and wholly-owned subsidiary of Silver Mountain ("Northeast"). The direct property interests of Silver Mountain consist of the Red Lake Claims and the Thunder Bay Claims and the indirect property interests consist of the Jungle Well Project and the Laverton Project held through Northeast as further described below.
Redlake Claims
Silver Mountain holds an option to acquire a 100% interest in and to 8 claim units located in Tait Township, Kenora Mining Division, Ontario.
Thunder Bay Claims
Silver Mountain holds an option to acquire a 100% interest in and to 47 (forty-seven) mineral claims located in the Petry Station, Carre Lake Area, Wawang Lake Area, and Antler Lake Area, Thunder Bay Mining Division of Ontario, which claims encompass 4 separate claim blocks totaling 590 claim units.
Jungle Well Project
The Jungle Well Project is held through Northeast and consists of West Australian Tenement E29/679 (fully granted) and covers over 7,500 hectares.
The Laverton Project
The Laverton Project is held through Northeast and consists of West Australian Tenement E38/2374 (pending grant) and covers over 9,600 hectares.
Source: Quantum Rare Earth Developments Corp.