Canada Rare Earth Corp (TSX-V:LL) told investors has obtained the right to increase its ownership in the Bom Futuro tailings property in Brazil to a controlling 52% and to become the operator of the project.
The company said the three owners of Bom Futuro have unanimously agreed to allow it to increase its equity position from the current 20% by arranging financing for development and it is working with investment bankers to raise the funds to bring the property into operation.
It noted that the property has a permit for extraction activities and that 25 years of tin mining by Paranapanema SA and artisanal operators has left 70 million tons of tailings containing multiple essential, critical and commercially saleable minerals, including tin/cassiterite, ilmenite, zircon and rare earths.
Tailings derived from any current and future mining operations over the 26-year lease term are also included, it added.
"Our team is extremely pleased to be nearing the financing and implementation phase of our project,” Canada Rare Earth CEO Tracy Moore said in a statement.
“In the very near term, we expect to capitalize on the essential minerals contained within the tailings, by applying more modern approaches, know-how and equipment than has historically been utilized.
“Our goal is to provide value to our shareholders and stakeholders and to become a significant, contributing member of the local community in proximity to the project which for years produced 3% of the global tin supply.”
As project lead, Canada Rare Earth said it is currently conducting development work to finalize the operational plans and production estimates for the extraction of essential minerals. This work includes bulk material tests, development of flow sheets, equipment selection, financial modelling, and mineral/metallurgical analyses.
"We are very confident with our plans for Bom Futuro operations and are looking forward to transitioning from planning to implementation of the overall project,” the company’s chief operating officer Peter Shearing added.
Canada Rare Earth Corp (TSX-V:LL) is developing an international integrated business focusing on essential and critical minerals, including rare earths. Its strategy is to generate revenues and positive cash flow as it acquires and develops its own properties and establishes value-added processing capabilities.
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