Canada Rare Earth Corp V.LL

Two potential locations for the refinery selected

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https://www.canadarareearth.com/9-june-2020

June 9, 2020

Canada Rare Earth Has Selected Two Potential Locations for a Rare Earth Refinery

Vancouver, British Columbia: Canada Rare Earth Corp. (“Canada Rare Earth” or the “Company”) (TSX.V: LL) is pleased to announce the selection of two regions within South America as suitable for the establishment of a rare earth refinery.

The selection is a result of a study commissioned and announced on February 18, 2020, which had the mandate of selecting the best two regions of six short-listed potential regions in which to locate the Company’s proposed South American rare earth refinery. 

Canada Rare Earth, with the help of a lead consultant, selected two regions based on a number of criteria including:

• Availability of known sources of input materials (rare earth concentrates and chemicals);
• Logistics and economics of transporting concentrates and chemicals to the selected site and of finished products (full spectrum of commercially traded are earth oxides and metals) to domestic and international markets;
• Availability of infrastructure such as water, power and modes of transportation;
• Existing and established relationships with persons having relevant experience and extensive connections in the region;
• Government support for business and industrial development and incentives such as tax waivers and concessions, grants and other financial support; and
• Availability and suitability of local employment base.

Canada Rare Earth will be pursuing the two regions simultaneously in order to maximize potential negotiating positions. Accordingly, the Company has not, as of this date, made a production decision as the initiative is subject to a number of factors including permitting and finance. 

Chris Goodman, Managing Director of Canada Rare Earth’s South American operations stated, “we studied the six regions in detail and spoke with knowledgeable individuals who have experience in the regions. Our work enabled us to confidently identify two regions that are superior for the siting of our refinery.”

Peter Shearing, Chief Operating Officer of Canada Rare Earth commented, “This greenfield initiative is based on our proven ability to source rare earth concentrate and our access to proven rare earth refinery design, construction and very importantly, operating experience.”

Tracy A. Moore, Chief Executive Officer of the Company explained, “We are placing a high priority on South America to deliver on our strategy while concurrently moving forward with the permitting of the completed rare earth refinery in Lao and with participation in another completed refinery.” 

On behalf of the Board,

 

Tracy A. Moore, CEO and Peter Shearing, COO