Canada Rare Earth Enters Into Financing Arrangement with Talaxis

Canada Rare Earth Corp. (TSXV:LL) announced that it has signed an memorandum of understanding for a financing arrangement with Talaxis Limited.
As quoted in the press release:

Canada Rare Earth and Talaxis have signed a Memorandum of Understanding (“MOU”) that sets out the proposed principles of a working relationship leading to cooperation in the development of supply chains in the rare earth industry. The terms and conditions are to be negotiated and included in subsequent definitive agreements which will detail arrangements regarding sourcing, processing and delivering rare earths, refinery facilities, financing capital expenditures and trade finance support.  The MOU also includes provisions for the parties to negotiate terms upon which Talaxis may participate in the capital structure of CREC using hybrid capital solutions that include debt, equity stake and warrants.
The MOU also contains provisions for the parties to negotiate arrangements with respect to mid-stream processing, sourcing of rare earth concentrates, trading, logistics, representation and participation in respective technical and advisory boards.
Canada Rare Earth will be Talaxis’s preferred strategic partner with respect to midstream rare earth processing capabilities including but not limited to developing, acquiring, designing, building, managing and operating rare earth enhancement, separation and metal making facilities.

Peter Shearing, COO of Canada Rare Earth, commented:

By joining forces with Talaxis the Company will immediately acquire access to a global trading and distribution network which would otherwise have taken years to establish and provides the Company with the benefits associated with an international group with a long and recognized history as a commodities trader. As a result, we can accelerate our business momentum towards achieving our strategic goal of being one of the leading integrated rare earth providers.

Click here to read the full Canada Rare Earth Corp. (TSXV:LL) press release.