VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2012) - Quantum Rare Earth Developments Corp. (TSX VENTURE:QRE)(OTCQX:QREDF)(FRANKFURT:BR3) ("Quantum" or the "Company") is pleased to announce that it has arranged, subject to regulatory approval, a non-brokered private placement consisting of up to 4,000,000 units (the "Units") at a price of $0.125 per Unit for gross proceeds of up to $500,000.
Each Unit will consist of one common share and one common share purchase warrant (a "Warrant"). Each Warrant shall be exercisable into one common share at a price of $0.25 per common share for a period of 24 months from the Closing Date. All securities issued pursuant to the private placement will be subject to resale restrictions expiring 4 months and one day following the close of the placement.
Proceeds of the private placement will be used to advance the Elk Creek Carbonatite project and for general working capital.
Finders' fees may be pay able in cash, shares or warrants with respect to certain private placement subscribers and in accordance with the policies of the TSX Venture Exchange.
On Behalf of the Board,
Peter Dickie, President, CEO
Cautionary note: This news release contains forward looking statements. These statements include, but are not limited to, statements with respect to the completion of an updated resource estimate, the commencement of a preliminary economic assessment study and management's expectation that the results of these studies will confirm the potential of the Elk Creek Project. Specifically, any statements regarding the potential increase of the Company's inferred resource at the Elk Creek Project and the goals and objectives of the Company are by their nature forward looking information. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43-101 report on the Elk Creek Project. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve known and unknown risks and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Other factors may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements.
Specific risk factors include risks associated with the ability obtain any necessary approvals, waivers, consents and other requirements necessary or desirable to permit or facilitate the development of the Company's properties, risks associated with project development; the need for additional financing; operational risks associated with exploration activities and results, mining and mineral processing; environmental liability claims and insurance; reliance on key personnel; tax consequences; and other risks and uncertainties.
The business of exploring for minerals involves a high degree of risk.
Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.