Rare Earth Metals (CVE:RA), a mineral exploration company, reported Tuesday that it has wrapped-up negotiations to buy Lavergne, a rare earth prospect, in Springer Township, Ontario.
The Lavergne prospect is located north of the town Sturgeon Falls, and 80 Km east of Sudbury. Results from a 1969 survey conducted by Geophysical Engineering and Surveys revealed considerable amounts of cerium, lanthanum, neodymium and europium, but only a few samples were assayed for all rare earth elements.
Rare earths are metals used in a number of green technologies, from wind turbines to hybrid car batteries and mobile phones.
Two distinct option agreements have been finalized for mineral rights and surface rights covering the Lavergne area. A third deal was struck with Zimtu Capital Corp. and two private prospectors to option 40 unpatented claim units totalling 647 hectares.
Under the deal terms for mineral rights to 128 hectares, staged payments of $217,000 over three years will be paid-out, and $36,000 upon signing the agreement. The owners will retain a 1% net smelter royalty.
A second agreement for surface rights to the eastern half of the patent, consisting of 64 hectares, requires payment of $150,000 to be made in two instalments, said Rare Earth Metals.
Finally, the third deal involves payments of $200,000 and 2 million shares in a time span of four years. Zimtu, along with two private prospectors, will retain a 2% net smelter royalty on the 40 unpatented claim units. All agreements are subject to TSX approval, the company said.
"We are very excited to have acquired the Lavergne property as it has great potential to host a rare earth deposit,” said CEO Michael Stares.
"Of particular note, is the enrichment of the heavy rare earth elements and europium in the system.
"With little or no other sampling for the other heavy rare earth elements, we look forward to getting our exploration program started."
Separately, the rare earth metal explorer also announced today that it has begun a 1500 kilometre helicopter-borne magnetic survey on its Coldwell property near Marathon, Ontario, scheduled to be complete by mid-June.
A follow-up exploration program to assess the 12 known rare earth occurrences, as well as the anomalies discovered through current and past surveys, is scheduled for this summer.
Rare Earth Metals currently has two advanced projects in Ontario, Newfoundland and Labrador. Its flagship properties are the Clay-Howells prospect, and the Red Wine project.
Shares for the company were up 4.26% or 10 cents to trade at $0.245 on Tuesday as of 1:32 p.m.