VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 30, 2012) - Quantum Rare Earth Developments Corp. (TSX VENTURE:QRE)(OTCQX:QREDF)(FRANKFURT:BR3) ("Quantum", the "Company") provides the following update to shareholders:
Although difficult financial market conditions persisted during the first 8 months of 2012, the Company was able to accomplish a number of goals set out at the onset of the year. On April 2, the Company received an updated resource estimate for the Elk Creek Niobium Deposit including the following highlights:
- Addition of higher grade indicated status tonnage of 19.3 Mt grading 0.67% Nb2O5;
- An increase in inferred status tonnage and grade from the previous resource estimate (News Release dated April 28, 2011); from 80.1 Mt grading 0.62% Nb2O5 to 83.3 Mt grading 0.63% Nb2O5.
On July 19th, the Company announced the finalization of a joint venture agreement concerning the Company's Australian Properties which included the following highlights:
- Quantum will retain a 20% carried to production interest in the project;
- Quantum will be reimbursed for its previously incurred exploration funds (estimated at $100,000 Australian dollars) and will receive 3,750,000 common shares of Victory Mines Limited upon successful completion of its Initial Public Offering ("IPO") on the Australian Stock Exchange ("ASE").
Victory has since informed the Company that all necessary documentation for their IPO has been filed with the ASE, whereby Victory is planning to raise $4,000,000 (Australian dollars) at an IPO price of $0.20 per common share, with an anticipated closing date and listing of its common shares in September, 2012.
In addition, the Company has signed Non-Disclosure and Confidentiality agreements with several parties concerning potential joint-venture and/or financing arrangements for development of the Elk Creek Niobium project. While discussions continue to advance, readers are cautioned that there is no assurance that these discussions will result in any transaction.
The Company has also reached an agreement through its wholly owned subsidiary, Silver Mountain Mines Corp. ("Silver Mountain"), Perry English for Rubicon Minerals Corporation ("English") concerning Silver Mountain's interest in 8 claim units located in the Kenora Mining Division, Ontario, Canada (the "Tait Property"), whereby the Company will issue 400,000 shares to English in lieu of a cash payment that was due pursuant to the underlying option agreement between Silver Mountain and English dated July 31, 2009, subject to TSX Venture Exchange approval. The Company entered into a subsequent option agreement dated November 28, 2011 with Titan Goldwork Resources Inc. whereby Titan can earn up to a 70% interest in the Tait property (see NR November 28, 2011 for complete details) which remains in effect.
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."