Quantum Rare Earth Developments Corp. is providing the following update to shareholders.
Although difficult financial market conditions persisted during the first eight months of 2012, the company was able to accomplish a number of goals set out at the onset of the year. On April 2, the company received an updated resource estimate for the Elk Creek niobium deposit including the following highlights:
- Addition of higher-grade indicated-status tonnage of 19.3 million tonnes grading 0.67 per cent niobium pentoxide;
- An increase in inferred-status tonnage and grade from the previous resource estimate (see news release dated April 28, 2011) from 80.1 million tonnes grading 0.62 cent Nb2O5 to 83.3 million tonnes grading 0.63 per cent Nb2O5.
On July 19, the company announced the finalization of a joint venture agreement concerning the company's Australian properties which included the following highlights:
- Quantum will retain a 20-per-cent carried-to-production interest in the project.
- Quantum will be reimbursed for its previously incurred exploration funds (estimated at $100,000 (Australian)) and will receive 3.75 million common shares of Victory Mines upon successful completion of its initial public offering on the Australian Stock Exchange.
Victory has since informed the company that all necessary documentation for its IPO has been filed with the ASE, whereby Victory is planning to raise $4-million (Australian) at an initial-public-offering price of 20 cents per common share, with an anticipated closing date and listing of its common shares in September, 2012.
In addition, the company has signed non-disclosure and confidentiality agreements with several parties concerning potential joint-venture and/or financing arrangements for development of the Elk Creek niobium project. While discussions continue to advance, readers are cautioned that there is no assurance that these discussions will result in any transaction.
The company has also reached an agreement through its wholly owned subsidiary, Silver Mountain Mines Corp., Perry English for Rubicon Minerals Corp., concerning Silver Mountain's interest in eight claim units located in the Kenora mining division, Ontario, Canada, whereby the company will issue 400,000 shares to Mr. English in lieu of a cash payment that was due pursuant to the underlying option agreement between Silver Mountain and Mr. English dated July 31, 2009, subject to TSX Venture Exchange approval. The company entered into a subsequent option agreement dated Nov. 28, 2011, with Titan Goldwork Resources Inc. whereby Titan can earn up to a 70 per cent interest in the Tait property (see news release dated Nov. 28, 2011, for complete details) which remains in effect.
We seek Safe Harbor.