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Pele Mountain MOU for Eco Ridge Monazite Processing Project Expires
Oct. 01, 2015 07:22AM PST
Rare Earth Investing
Pele Mountain Resources Inc. (TSXV:GEM,OTCQX:GOLDF) reported that its MOU for the Eco Ridge Monazite Processing Project in Elliot Lake, Ontario with Sheng Kang Ning (Shanghai) Mining Investment Co. Ltd. expired automatically on September 30, 2015.
Pele Mountain Resources Inc. (TSXV:GEM,OTCQX:GOLDF) reported that its MOU for the Eco Ridge Monazite Processing Project in Elliot Lake, Ontario with Sheng Kang Ning (Shanghai) Mining Investment Co. Ltd. expired automatically on September 30, 2015. Under the terms of the agreement, a pre-condition for the joint venture was a Chinese government approval for SKN to use its proprietary separation technology in Elliot Lake – there has been no timely pathway for this approval. Pele Mountain is continuing to explore opportunities to co-operate with SKN on a non-exclusive basis, and will also begin engaging in discussions with other interested parties.
As quoted in the press release:
On March 28, 2015, Pele signed a Memorandum of Understanding (“MOU”) with Sheng Kang Ning (Shanghai) Mining Investment Co. Ltd., (“SKN”), a subsidiary of Shenghe Resources Holding Co. Ltd. (SH 600392) to work together exclusively toward negotiating a definitive Joint Venture agreement (the “JV”) for the development of rare earth processing facilities in Elliot Lake. Under terms of the MOU, SKN would design, build, and operate the new facilities for the JV.
Among the necessary pre-conditions for the formation of the JV was receipt of Chinese government approval for SKN to use its proprietary separation technology in Elliot Lake. Although SKN has worked diligently to secure such approval, there remains no timely pathway for its receipt. Since the definitive JV has not yet been formed, the MOU expired automatically on September 30, 2015, pursuant to its terms.
Pele President Al Shefsky stated, “We wish to thank our friends and colleagues at SKN for their work with Pele over the last several months.”
Notwithstanding the expiration of the MOU, Pele is continuing to explore opportunities to co-operate with SKN on a non-exclusive basis, and will also now begin engaging in discussions with other interested parties who possess the financial and technical capabilities to develop rare earth processing facilities.