Sign up USA
Proactive Investors - Run By Investors For Investors

Rare Earth Metals acquires Lavergne asset in Ontario

Rare Earth Metals acquires Lavergne asset in Ontario

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.

View full PROAC profile View Profile

Proactiveinvestors Timeline

Related Articles

Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
Apollo 11
February 22 2018
Immersive VR, a technology company focused on the education space, was the first company Sure backed
Marketing and public relations
April 04 2018
"Our Beyond, MBooth and Publitek agencies have been stand-out performers, whilst we have achieved solid performances pretty much across the portfolio"

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use