QUANTUM ANNOUNCES $1.5 MILLION PRIVATE PLACEMENT

2011-10-14 16:58 ET - News Release

Mr. Peter Dickie reports

Quantum Rare Earth Developments Corp. has arranged, subject to regulatory approval, a non-brokered private placement, consisting of up to 10 million units at a price of 15 cents per unit for gross proceeds of up to $1.5-million.

Each unit will consist of one common share and one-half of one common share purchase warrant. Each full warrant shall be exercisable into one common share at a price of 25 cents per common share for a period of 24 months from the closing date.

Proceeds of the private placement will be used to advance the Elk Creek carbonatite project and for general working capital.

Finders' fees may be payable in cash, shares or warrants with respect to certain private placement subscribers and in accordance with the policies of the TSX Venture Exchange.