Canada Rare Earth Completes Hedged Purchase and Sale Agreements and Enters into Additional Agreements
TSX VENTURE: LL
VANCOUVER, BC--(Marketwired - May 02, 2017) - Canada Rare Earth Corp. (TSX VENTURE: LL) ("Canada Rare Earth" or the "Company") is pleased to announce continuing and increasing momentum in its concentrate trading business.
Canada Rare Earth completed the purchase and sale of 180 metric tons of the 310 metric tons of rare earth concentrate announced on March 21, 2017 and, as a result, collected $386,000 of gross proceeds. The Company also recently collected $24,000 of fees generated from providing rare earth supply chain advisory services in the December 31, 2016 fiscal quarter. Costs associated with the completed sale total $335,000.
We expect to complete the purchase and sale of 90 metric tons of rare earth concentrate within two weeks.
The back order balance of 40 metric tons and an additional 350 metric tons of concentrate is scheduled for shipment in June 2017.
Peter Shearing, Chief Operating Officer of Canada Rare Earth explained, "These transactions are all part of the master agreement we announced on September 8, 2016 for a total of 16,500 metric tons over a 36 month period. We are pleased with the current momentum and acceleration under this arrangement as we now expect to exceed the 500 metric ton monthly target from this source."
Tracy A. Moore, Chief Executive Officer of Canada Rare Earth remarked, "The quality of the concentrate meets and in some cases exceeds our requirements and importantly is to the specifications set by our client. We continue to seek additional sources of concentrate for immediate and longer-term purposes as our customer base is now requesting additional volumes of concentrate from us. The trading transactions are all profitable and contribute positive cash flow to our company."