Rare Element acquires Eden Lake REE Project, to file Form 20F
Eden Lake Rare Earth Element Project,
The Eden Lake REE Project is located 35 kilometers northwest of
REE-enriched minerals identified in petrographic studies include strontium-REE-apatite, britholite, allanite, and REE mineral inclusions in andradite garnet. REE enrichments occur in all hydrothermally metasomatized rocks. The highest REE concentrations encountered by VMS are in the carbonatite dikes (up to 1.6% total REO, 9,764 ppm Sr, and 745 ppm Y), and in hydrothermal REE-rich veins (up to 13.8% total REO and 5,307 ppm Y). VMS also discovered heavy REEs (Eu-Lu) on the project during their field work. Rare Element will be evaluating the carbonatite complex, which may have similarities to the Company’s Bear Lodge project, and the heavy rare earths plus yttrium in the hydrothermal veins.
A drill program was completed on the project in 2006, and the holes provided additional favourable geologic indications for a carbonatite complex, but without hitting significant REE grades. Six holes for a total of 765 meters were drilled in the northeastern half of the 8 square kilometer zone of intensely altered rocks. Most of the favourable targets have not been adequately tested, and additional exploration of the project for yttrium and heavy rare earths is warranted.
Rare Element has agreed to acquire 100% of the Eden Lake REE Project for payment of 300,000 common shares and a 3% Net Smelter Returns (“NSR”) royalty. The Letter of Intent calls for a due diligence period, which is currently underway, and a formal purchase agreement to be signed. The common shares will be issued as 75,000 at closing, and 75,000 at 6, 12, and 18 months thereafter. Rare Element also has the right to buy 50% of the 3% NSR for
Rare Element has also agreed to pay a finder’s fee of 20,000 common shares to two parties for this acquisition.
The acquisition is subject to various conditions and approvals of the Boards of Directors and regulatory authorities.
The Company has also engaged an experienced contractor to assist in preparing a Form 20F with the US Securities and Exchange Commission. Rare Element currently has a “Blue Sky” exemption in
Rare Element also became a Tier One issuer on the TSX Venture Exchange in
Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral-resource company focused on gold and strategic metals, specifically the rare-earth elements. Rare Element Resources and Newmont have entered into the
Rare Element Resources’ Bear Lodge,
ON BEHALF OF THE BOARD Donald E Ranta, PhD, PGeo, President & CEO
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.
SOURCE Rare Element Resources Ltd.