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Canada Rare Earth Takes Further Steps Toward Permitting Refinery
Canada Rare Earth Corp. (TSXV:LL) announced that it has made significant advancements toward obtaining permits that will authorize the start of operations at a Southeast Asia-based refinery.
Canada Rare Earth Corp. (TSXV:LL) announced that it has made significant advancements toward obtaining permits that will authorize the start of operations at a Southeast Asia-based refinery. The company also said it has restructured its agreement to purchase a majority stake in the company that owns the refinery.
As quoted in the press release:
Pursuant to the restructured agreement:
Canada Rare Earth will continue to take responsibility for the application for permits
If and when the permits are issued:
- Canada Rare Earth will have earned the right of first refusal to sell concentrate to the Refinery to the full extent of the Refinery’s requirements;
- Canada Rare Earth will have earned the right of first refusal to sell products produced by the Refinery to the full extent of production;
- Canada Rare Earth will have earned the right to purchase a minimum of 60% of the issued and outstanding shares of RefineryCo (the “Purchase Shares”) for a price to be negotiated between the Owner, the Company and the financiers who facilitate the acquisition of the Purchase Shares based on: market conditions, capabilities of the Refinery, working capital requirements of the Refinery and the amount of funds raised by Canada Rare Earth. Shareholders of the Refinery will be required to contribute to the Refinery’s working capital requirements in proportion to their respective equity holdings; and
- Canada Rare Earth and its financiers will have six months from the receipt of Final Operating Permits to complete negotiations for the purchase of the Purchase Shares, to pay for the Purchase Shares and to contribute to the working capital requirements.
Tracy A. Moore, CEO of Canada Rare Earth, commented:
Simultaneous with our permitting efforts, we will seek to raise between US$50 million and US$110 million to purchase RefineryCo equity and contribute to the working capital requirements through a special purpose vehicle (“SPV”) so as not to dilute shareholders of Canada Rare Earth. Our goal is to control the SPV and thereby own a majority interest in RefineryCo and the Refinery.
We have identified a suitable source of concentrate for the Refinery and are working towards a second source. We are also reinvigorating discussions with prospective purchasers of the final products of the Refinery.
Click here to read the full Canada Rare Earth Corp. (TSXV:LL) press release.
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