VANCOUVER, British Columbia, Dec. 21, 2012 (GLOBE NEWSWIRE) -- Quantum Rare Earth Developments Corp. (TSX-V:QRE) (Frankfurt:BR3) (OTCQX:QREDF) ("Quantum", the "Company") is pleased to announce that further to its news release of October 5, 2012, it has closed its private placement of 2,984,160 units at $0.125 per unit for total gross proceeds of $373,020. Each unit consists of one common share and one transferable share purchase warrant, each warrant entitling the holder to purchase one additional common share for a period of two years at a price of $0.25 per share.
The Company paid a total of $12,600 in cash and issued 100,800 share purchase warrants to finders for their efforts in finding certain placees. Each finder's warrant is exercisable into one common share of the Company for two years at a price of $0.125 per share. All securities issued under the placement are subject to hold periods expiring on March 14, 2013 (as to 2,756,160 units) and April 21, 2013 (as to 228,000 units).
Proceeds of the placement will be used to advance the Elk Creek Carbonatite project and for general working capital.
The Company also wishes to announce the completion of its Annual General Meeting held on Wednesday, December 12, 2012. The following individuals were elected to the Board of Directors, Peter Dickie, Claude Dufresne, David Beling and Erin Chutter. Peter Dickie was appointed President, Chief Executive Officer and Secretary. Casey Forward was appointed Chief Financial Officer. In addition, the Company's auditors and stock option plan were also approved.
In reviewing the past year, Peter Dickie, President and CEO commented "although challenging financial markets persisted throughout the year, we have succeeded in expanding the number of potential partners we are discussing the Elk Creek project with. With these discussions continuing on several fronts, we hope to reach a successful conclusion with one or more of the parties early in the new year."
Situated in the mining friendly state of Nebraska, the Elk Creek carbonatite niobium project is the only significant niobium deposit in the U.S., where 100% of its niobium needs are imported. 2012 saw U.S. legislation naming niobium as a strategic and critical metal, highlighting the importance of the mineral for both economic and military uses. With the significant size and grade of this strategic mineral deposit (NI43-101 resource of 19.3 Million tonnes grading 0.67% Indicated containing over 129,182 tonnes of Nb2O5, and 83.3 Mt grading 0.63% containing over 129,182 tonnes of Nb2O5. Inferred) it is garnering the attention of a number of significant domestic and international corporations.
For further information, contact the Company at (604) 568-7365.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
Cautionary note: This report contains forward looking statement. Resource estimates, unless specifically noted, are considered speculative. The Company has filed a National Instrument 43-101 report on the Elk Creek Project. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.
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CONTACT: Peter Dickie, President, CEO 604-568-7365Source: Quantum Rare Earth Developments