Critical Elements Corporation Acquires Eight Rare Earth and Tantalum-Niobium Projects
LAVAL, QUEBEC -- (Marketwire) -- 02/22/11 -- Critical Elements Corporation (TSX VENTURE: CRE)(OTCQX: FGEXF)(FRANKFURT: F12) is pleased to announce that it has signed an agreement to acquire a 100% interest in eight rare earth element (REE), niobium and tantalum properties in Quebec.
The eight properties, Weres, Seigneurie, Sophie, Reine, J6L1, Lac-Sevigny-NE, Gatineau and Melasse, were acquired in 2009 by the vendors following a detailed review of the government geochemistry databases for rock samples collected in the past and an assessment of geological sectors with rare-earth and rare-metal potential. Some work was also done on certain rare earth and tantalum-niobium showings to confirm their historical grades and geology. These projects generated some of the best regional geochemistry results obtained from earlier work linked to rare earths and tantalum-niobium. The Company also acquired another 172 cells by map designation at the Ministere des Ressources naturelles to expand the surface area of the blocks and protect the potential extensions of the known showings.
The results obtained on these properties are shown in the following table:
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Project Primary
Property Summary Substance
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Gatineau 4.06% TREE 2.21% Ce 0.94% La 0.89% Nd Rare earths
Lac Savigny-
NE 0.67% TREE 0.19% La 0.15% Nd 0.026% Pr Rare earths
0.016% Sm 0.28% Ce
Melasse 0.24% Ce 0.12% La 0.095% Nd 0.012% Sm Rare earths
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Sophie 3.57% TREE 1.67% Ce 0.94% La 0.68% Nd Rare earths
0.184% Pr 0.016% Sr 0.27% Th 0.05% Y
0.63% Zr 0.078% Sm
Weres 0.303% TREE 0.06% Nd 0.154% Ce 0.61% Zr Rare earths
0.19% Th 0.09% La
Reine greater than Rare earths/
1% Zr 319 ppm Ta2O5 0.022% Th 0.47% Zr Tantalum
740 ppm Rb 0.99% Cu 0.28% Ni 0.12% Co
Seigneurie Tantalum-
0.319% Nb 131 ppm Ta2O5 0.22% Y 0.84% Zr Niobium
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J6L1 2,100 ppm Tantalum-
2.63% Nb2O5 Ta2O5 1.08% Y 0.455% La Niobium
9.45% Zr 0.025% ThO2
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Critical Elements Corporation has the option to acquire a 100% interest in the eight properties by making the following cash and share payments to the vendors: (i) $10,000 at signature; and (ii) 1,000,000 common shares on receipt of approval from the TSX Venture Exchange ('TSX.V'). The vendors are also entitled to a 1.5% net smelter return royalty; Critical Elements Corporation can buy back the first half (0.75%) of the royalty for $0.5 million and the remaining half for $5 million. The transaction is subject to the approval of the TSX.V.
It should also be noted that, following the resignation of Messrs. Ayotte and Boisjoli last March, the number of options held by them was reduced by mutual agreement. Under the agreement, the number of options was decreased from 200,000 to 50,000 in the case of Mr. Boisjoli, and from 400,000 to 50,000 in the case of Mr. Ayotte.
Neither the 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.
Contacts:
Critical Elements Corporation
Jean-Sebastien Lavallee, P.Geo.
President and Chief Executive Officer
819-354-5146
president@cecorp.ca