Feb 23 2011
Green Technology Solutions, Inc. (OTCBB:GTSO) announced today that the company is negotiating a letter of intent with Arizona-based WCI Brokers to acquire the Rio Del Monte Mining properties and assets in La Paz County, Ariz.
GTSO is interested in potentially developing the mine into a domestic source of rare earth elements.
“This property has never been mined for rare earths before, but based on our analysis, Rio Del Monte could become a very profitable domestic source of such critical materials”
The Rio Del Monte property and assets include 400 deeded acres and 20 federal patent claims as well as the associated rights needed to operate the mine. Though gold and silver were once mined at Rio Del Monte, the property has most recently been used as a gravel operation. Once both parties sign the letter of intent, Green Technology Solutions will have 90 days to negotiate a potential purchase.
"This property has never been mined for rare earths before, but based on our analysis, Rio Del Monte could become a very profitable domestic source of such critical materials," said GTSO President and CEO John Shearer. "We look forward to conducting our due diligence on this opportunity and negotiating the definitive acquisition soon."
Rare earths are crucial to the defense and economy of the United States and its allies. The difficult-to-mine minerals are used in the construction of electric cars, iPads, flat-screen TVs, and high-tech weapons. China's stranglehold over global production of rare earth has spurred supply concerns in the U.S., Japan and South Korea. Twenty years ago, the U.S. led the world in production of rare earths. China implemented a long-term strategy to edge the U.S. out of the rare earths market by flooding the globe with cheap materials.
Having now established a near-monopoly over rare-earth production worldwide, China is drastically reducing its exports in an attempt to force foreign technology firms to move their manufacturing to China. Today, the U.S. is totally reliant on the communist nation for the production of its most powerful weapons and technology. By turning disused mines such as Rio Del Monte into productive domestic sources of rare earth elements, GTSO could help provide an uninterruptable domestic supply of the critical materials, eliminating the threat to U.S. security.
GTSO is already working to develop rare earth mines outside of China. Earlier this month, the company entered into a joint venture agreement with Rare Earth Exporters of Mongolia (REE) in order to procure rare-earth mining claims and operations in that developing Asian nation. Shearer said Monday that GTSO would utilize the joint venture's personnel and expertise to develop any potential operations at Rio Del Monte if and when the acquisition is completed.
GTSO commercializes clean and renewable mining technology and products in a sector that affectsMolycorp, Inc. (NYSE:MCP), General Motors (NYSE:GM), Rare Element Resources Ltd. (AMEX:REE - News) and General Electric (NYSE:GE).
Source: Green Technology Solutions, Inc.