Pele Mountain Signs MOU With China’s Sheng Kang Ning to Develop a Rare Earth Processing Facility

Pele Mountain Resources (TSXV:GEM) has signed a non-binding memorandum of understanding (MOU) with Sheng Kang Ning (Shanghai) Mining Investment to pursue the opportunity of developing rare earth processing facilities at Pele’s Eco Ridge property in Ontario.

As quoted in the press release:

SKN is a foreign investment platform, and 90-percent owned subsidiary, of Shenghe Resources Holding Co. Ltd., (“Shenghe”) (SH 600392), a global leader in rare earth mining, processing and downstream chain. SKN & Shenghe possess proprietary technologies for environmentally sustainable, low cost, rare earth processing and have the expertise and experience to design, build, and operate rare earth processing facilities.

The MOU sets out the terms under which Pele and SKN (the “Parties”) will work together, subject to the approval from relevant Chinese and Canadian government authorities, on an exclusive basis within Canada, to negotiate a definitive agreement (the “Definitive Agreement”) to establish a joint venture for the sustainable development and operation of a state-of-the-art monazite processing facility and downstream value added rare earth processing facilities, to be located on Pele’s Eco Ridge Property.
(Neither party shall be under any restriction with respect to carrying on such business outside Canada.)

Pele president, Al Shefsky, said:

We are delighted to enter into this MOU with SKN. The MOU represents a strong endorsement for Pele’s monazite processing strategy, and is an important first step to bringing the experience and expertise of a proven global leader in rare earth processing to our Project in Elliot Lake, Ontario.

Click here to read the Pele Mountain Resources (TSXV:GEM) press release