Canada Rare Earth Secures Long Term REE Concentrate Supply from Brazil Joint Venture

Canada Rare Earth (TSXV:LL) has entered into an agreement to purchase all rare earth concentrate to be produced from the Mata Azul property in Brazil. Currently, the mineral rights to the property are owned by Mineracao Mata Azul.

Pursuant to the long term supply/sales agreement Canada Rare Earth has the rights but not the obligation to purchase all of the rare earth concentrate produced from the Mata Azul property for a base price plus a percentage of the difference between the base price and fair market value. The duration of the arrangement is for 20 years plus automatic extensions under certain situations.

Canada Rare Earth president and CEO, Tracy A. Moore, said:

The property has the potential to support a large separation refinery business in Brazil and complements our global business strategy of establishing multiple refineries in various globally significant locations. The Company is currently in advanced negotiations with several potential investors to finance up to a 10,000 metric ton refinery in Brazil. Whether negotiations are successful with those particular potential investors the Company believes that having secured a potential long term supply of rare earths will result in end users or other conventional commercial lenders being willing to provide project financing. If financing is obtained and a concentration facility is completed the Mata Azul project will represent a rich source of rare earth concentrate well suited to our proposed refineries, in volumes that enable planning for large scale operations producing a full spectrum of rare earth oxides on a long term basis and at an advantageous price.

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