Feb 23 2011
Critical Elements Corporation (TSX VENTURE:CRE)(OTCQX:FGEXF)(FRANKFURT:F12) has announced that it has signed an agreement to acquire a 100% interest in eight rare earth element (REE), niobium and tantalum properties in Quebec.
The eight properties, Weres, Seigneurie, Sophie, Reine, J6L1, Lac-Sévigny-NE, Gatineau and Mélasse, were acquired in 2009 by the vendors following a detailed review of the government geochemistry databases for rock samples collected in the past and an assessment of geological sectors with rare-earth and rare-metal potential. Some work was also done on certain rare earth and tantalum-niobium showings to confirm their historical grades and geology. These projects generated some of the best regional geochemistry results obtained from earlier work linked to rare earths and tantalum-niobium. The Company also acquired another 172 cells by map designation at the Ministère des Ressources naturelles to expand the surface area of the blocks and protect the potential extensions of the known showings.
Critical Elements Corporation has the option to acquire a 100% interest in the eight properties by making the following cash and share payments to the vendors: (i) $10,000 at signature; and (ii) 1,000,000 common shares on receipt of approval from the TSX Venture Exchange ("TSX.V"). The vendors are also entitled to a 1.5% net smelter return royalty; Critical Elements Corporation can buy back the first half (0.75%) of the royalty for $0.5 million and the remaining half for $5 million. The transaction is subject to the approval of the TSX.V.
It should also be noted that, following the resignation of Messrs. Ayotte and Boisjoli last March, the number of options held by them was reduced by mutual agreement. Under the agreement, the number of options was decreased from 200,000 to 50,000 in the case of Mr. Boisjoli, and from 400,000 to 50,000 in the case of Mr. Ayotte.
Source: Critical Elements Corporation