Rare Earth Metals Inc. is pleased to announce the closing of the acquisition of four key rare earth properties known as Mann One and Two Tom within the Red Wine district in Labrador, adjacent mineral claims to the Mann One and Two Tom properties known as the Red Wine Claims plus surface rights and mineral claims adjacent to the Lavergne-Springer Property in Ontario known as the "Lavergne-Springer Extension" (collectively referred to as the "Acquired Properties").
The Acquired Properties together with the previously acquired Lavergne-Springer Property and the Dory Pond Property in the Red Wine complex (collectively referred to as the "Properties") have been acquired based on the success of exploration to date and represent the Company's initial rare earth property inventory. The Properties will be the basis of a platform from which the recently announced rare earth vertical integration strategy will be launched. Going forward, in addition to continuing to assess the Properties, the Company will be assessing other property opportunities developed by third parties if they have the mineralogical characteristics that are required in order to have the potential to produce rare earth end products that meet customer specifications.
In order to complete the acquisition of the Acquired Properties the Company: (i) paid and issued to the vendors of the Mann One and Two Tom properties the aggregate of $86,800 and 100,000 common shares pursuant to an amended option agreement; (ii) paid $100,000 to the vendor of the Red Wine Claims pursuant to an amended option agreement; and (iii) issued 800,000 common shares in June 2012 to the owners of the Lavergne-Springer Extension pursuant to an amended option agreement. The Company previously acquired 100% of the Lavergne-Springer patented surface rights for $150,000 and has the right to acquire 100% of the patented mineral rights for $241,111 of which it has paid $80,000. The Acquired Properties are each subject to a 2% NSR royalty, 50% of each may be purchased by the Company for $1 million.
The results of exploration on the Properties include: (i) a NI 43-101 compliant inferred resource estimate at the Two Tom property consisting of 40 million tonnes grading 1.18% total rare earth oxide (see press release dated December 13, 2011); (ii) at the Dory Pond Property a 42.9 meter intercept of 1.11% total rare earth oxide of which 41% was heavy rare earth oxide situated in a large soil anomaly measuring 3 kilometers by 2 kilometers (see press release dated Sept 6, 2011); and (iii) a NI 43-101 compliant indicated resource estimate at the Lavergne-Springer Property consisting of 4.2 million tons averaging 1.14% total rare earth oxides with an inferred resources of 12.7 million tons averaging 1.17% total rare earth oxides consisting of 17% neodymium oxide content in the indicated category and 15.6% neodymium oxide content in the inferred category (see press release dated May 11, 2012).
Reg Felix, P Geo., is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information forming the basis for release.