Critical Elements Corporation

Published : June 28th, 2016

2016-06-28 Critical Elements Corporation announces strategic partner HELM AG to provide up to $4.5m funding for feasibility study

( 0 vote, 0/5 ) Print article
  Article Comments Comment this article Rating Follow Company  
0
Send
0
comment
Keywords :   Georgia | Lithium | Market | Paradox | Tantalum |

2016-06-28 Critical Elements Corporation announces strategic partner HELM AG to provide up to $4.5m funding for feasibility study

June 28, 2016 - Montreal, Quebec - Critical Elements Corporation
(TSX-V: CRE) (US OTCQX: CRECF) (FSE: F12) ('Critical' or the 'Corporation') is pleased to announce it has entered into an agreement for a credit facility of up to $4.5 million (the 'Credit Facility') arranged by its strategic partner HELM AG ('HELM'). The Credit Facility will allow the Corporation to fund its feasibility study on the Rose lithium-Tantalum project. On September 9th 2015, Critical and HELM entered into a collaboration agreement, which is described below.

The material terms of the Collaboration Agreement announced on September 9th, 2015 are as follows:

Take or pay off-take Agreement
Subject to the take or pay off-take agreement to be executed by the parties (the 'Take or pay off-take Agreement'), HELM will have the sole and exclusive right to purchase all of the produced products including spodumene concentrate (technical and chemical grade), all lithium chemicals (carbonate, hydroxide, chloride), mica and Tantalum concentrate (collectively, the 'Products').

The parties will use their commercially reasonable efforts to finalize and execute the Take or pay off-take Agreement by no later than 60 days following the completion of the feasibility study. Under the Agreement, and subject to certain conditions, notably the exercise of the Financing Option (as defined below), HELM has also been granted a right of first refusal to become the exclusive off-taker for all Products on any of the future projects of Critical Elements (or its affiliates).

Feasibility Study
HELM has agreed to collaborate with, assist and provide technical support to Critical Elements for the preparation and completion of the feasibility study. HELM has further agreed to provide logistical and sales support to Critical Elements in relation to the distribution and sale of all future mineral products to be produced on the Project (the 'Mine').

Project Financing
As consideration for HELM's covenants and undertaKings under the Agreement, Critical Elements has agreed to grant HELM an option to acquire an ownership interest of up to 25% in the project by committing to pay for a portion of the mine construction costs (the 'Financing Option'). HELM may exercise the Financing Option within a period of 60 days after having received written notice from Critical Elements to the effect that it has arranged financing for mine construction. The Financing Option is subject to certain conditions, including the execution of the Take or pay off-take Agreement.

'This financing is a significant step forward for Critical, as we are now fully funded to complete our bankable feasibility study.' said Jean-Sébastien Lavallée, President & CEO of the Corporation. 'With this funding committed and the identity of our strategic partner now disclosed, now confirms beyond all doubts the capacity and the quality of its partner.'

Credit Facility terms:
The Credit Facility shall have a term of 5 years and shall bear interest at an annual rate of 12%. On the closing of the transaction, Critical will make an initial draw of $1.5 million (the 'Initial Drawdown') and may, upon mutual agreement of the parties, make two additional draws for an amount of $1.5 million each. In connection with the Initial Drawdown, HELM shall receive 2,500,000 non-transferable share purchase exercisable entitling it to purchase same number of common shares of the Corporation a price of $0.77 per share.

HELM shall also receive additional non-transferable warrants in connection with the second and third drawdown. The number of warrants to be issued to HELM at the time of such drawdown shall be determined by dividing the amount drawn by the Corporation under the Credit Facility by the market price of Critical's common shares on the TSX Venture Exchange (the 'Exchange') on the day immediately prior to the drawdown date. Furthermore, the exercise price of such warrants shall be equal to 20% over the 10-day volume weighted average price of Critical's common shares on the Exchange, calculated immediately prior to the such drawdown date.

The total number of warrants which may be issued to HELM under the Credit Facility shall however not exceed 12 million, and will expire on the earlier of (i) 18 months from the date of issuance, (ii) 5 years following the date of the Initial Drawdown, and (iii) any shorter period imposed by the policies of the Exchange in the event of advance repayment of all or any part of the amounts drawn under the Credit Facility. The warrants shall be subject to a 4 month regulatory hold period from their date of issuance.

Closing of the transaction is expected to occur shortly and is subject to the execution of final documentation customary to this type of transaction and the receipt of the required regulatory approvals.

About Critical Elements Corporation
A recent financial analysis (Technical Report and Preliminary Economic Assessment (PEA) on the Rose lithium-Tantalum Project, Genivar, December 2011) of the Rose project based on price forecasts of US$260/kg ($118/lb) for TaO contained in a tantalite concentrate and US$6,000/t for lithium carbonate (LiCO) showed an estimated after-tax Internal Rate of Return (IRR) of 25% for the Rose project, with an estimated Net Present Value (NPV) of CA$279 million at an 8% discount rate. The payback period is estimated at 4.1 years. The pre-tax IRR is estimated at 33% and the NPV at $488 million at a discount rate of 8%. (Mineral resources are not mineral reserves and do not have demonstrated economic viability). (The preliminary economic assessment is preliminary in nature). (See press release dated November 21, 2011.)

The conclusions of the PEA indicate the operation would support a production rate of 26,606 tons of high purity (99.9% battery grade) LiCO and 206,670 pounds of TaO per year over a 17-year mine life.

The project hosts a current Indicated resource of 26.5 million tonnes of 1.30% LIO Eq. or 0.98% LIO and 163 ppm TaO and an Inferred resource of 10.7 million tonnes of 1.14% LIO Eq. or 0.86% LIO and 145 ppm TaO.

FOR MORE INFORMATION:

Jean-Sébastien Lavallée, P.Geo.
President and Chief Executive Officer
819-354-5146
[email protected]
www.cecorp.ca

Investor Relations:
Paradox Public Relations
514-341-0408

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.

Read the rest of the article at www.publicnow.com
Data and Statistics for these countries : Georgia | All
Gold and Silver Prices for these countries : Georgia | All

Critical Elements Corporation

EXPLORATION STAGE
CODE : CRE.V
Follow and Invest
Add to watch list Add to your portfolio Add or edit a note
Add Alert Add to Watchlists Add to Portfolio Add Note
ProfileMarket
Indicators
VALUE :
Projects & res.
Press
releases
Annual
report
RISK :
Asset profile
Contact Cpy

Critical Elements is an exploration gold company based in Canada.

Critical Elements holds various exploration projects in Canada.

Its main exploration properties are MATCHI-MANITOU, ROSE (LAC PIVERT), CROINOR, GATINEAU, LAC SAVIGNY NE and MELASSE in Canada.

Critical Elements is listed in Canada. Its market capitalisation is CA$ 125.8 millions as of today (US$ 96.7 millions, € 81.1 millions).

Its stock quote reached its lowest recent point on August 14, 2009 at CA$ 0.07, and its highest recent level on December 15, 2017 at CA$ 1.86.

Critical Elements has 148 030 000 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
Rate : Average note :0 (0 vote) View Top rated
 
Annual reports of Critical Elements Corporation
Annual Report 2007
Financings of Critical Elements Corporation
2/21/2013Arranges Non-Brokered Private Placement
4/1/2011ANNOUNCES FINAL CLOSING OF ITS FINANCING
3/4/2011Reports a Partial Closing of its Financing
6/12/2008arranging non-brokered private placements for up of $1,750,0...
Nominations of Critical Elements Corporation
12/1/2010Appointment of Michel Robert and Jean Rainville as directors...
2/15/2008announce the appointment of Mr. Patrick Bradley
Project news of Critical Elements Corporation
6/9/2011INTERSECTS 1.29% LI20 AND 275 PPM TA2O5 OVER 5.90 METRES NEA...
5/26/2011(Rose (lac Pivert))INTERSECTS 1.64% LI20 AND 226 PPM TA2O5 OVER 9.20 METRES NEA...
4/28/2011(Rose (lac Pivert))INTERSECTS UP TO 1.60% LI2O, 427 PPM TA2O5, 749 PPM BEO, 5,1...
3/20/2011(Rose (lac Pivert))Discovers a New Zone in Drilling on the Rose Deposit
2/22/2011(J6l1)Acquires Eight Rare Earth and Tantalum-Niobium Projects
2/9/2011(Rose (lac Pivert))Drilling Leads to New Tantalum Discovery on Pivert/Rose
2/2/2011(Rose (lac Pivert))Pre-Feasibility Study Underway for the Rose Deposit
6/3/2010(Rose (lac Pivert))Intersects 1.24% Li2O, 3,532 g/t Rubidium, 208 ppm Ta2O5, 16...
3/27/2008(Croinor)Start a Follow-Up Diamond Drill Program at Croinor
1/24/2008(Croinor)RESOURCE ESTIMATE ON CROINOR
Corporate news of Critical Elements Corporation
8/8/2016Discovery of a pegmatite traced over more than 700 metres on...
8/8/2016Discovery of a pegmatite traced over more than 700 metres on...
8/8/2016Discovery of a pegmatite traced over more than 700 metres on...
8/1/2016Quarterly Activities Report - 30 June 2016
8/1/2016Activities Report to 30 June 2016
7/6/20162016-07-06 Critical Elements (TSXV: CRE) and Natan (TSXV: NR...
7/6/20162016-07-06 Critical Elements (TSXV: CRE) and Natan (tsxv: nr...
6/28/20162016-06-28 Critical Elements Corporation announces strategic...
6/2/20162016-06-02 Critical Elements announces closing of $6 million...
5/18/20162016-05-18 Critical Elements announces $5 million bought dea...
5/6/20162016-05-06 Lepidico exercised Lemare option
5/6/2016Lemare Option Exercised
5/2/2016Activities Report to 31 March 2016
4/28/2016CRITICAL ELEMENTS (TSXV: CRE.V) AND LOMIKO (TSXV: LMR.V) TO ...
4/28/20162016-04-28 Critical Elements (tsxv: cre) and lomiko (tsxv: l...
9/9/20152015-09-09 Critical Elements signs with strategic partner fo...
9/9/2015CORRECTION FROM SOURCE/Critical Elements Signs With Strategi...
9/8/20152015-09-08 Critical Elements signs with strategic partner fo...
9/8/2015IIROC Trading Resumption - CRE
9/8/2015Critical Elements Signs With Strategic Partner for: Off-Take...
9/3/2015IIROC Trading Halt - CRE
6/18/2015Critical Elements Corporation: Annual Meeting
6/16/2015Critical Elements Announces a Closing of $600,300
6/16/20152015-06-16 Critical Elements announces a closing of $600,300
1/16/2015Options Granted
1/16/2015Critical Elements Corporation: Options Granted
12/22/20142014-12-22 Critical Elements announces second closing of $16...
12/22/2014Critical Elements Announces Second Closing of $165,000
12/2/20142014-12-02 Critical Elements announces first closing of $300...
12/2/2014Critical Elements Announces First Closing of $300,000
10/1/2014Critical Elements Confirms the Economic Potential Value of M...
8/14/2014Critical Elements Receives Positive Material Testing Results...
8/7/2014Critical Elements Corporation: Matthew Lauriston Starnes App...
8/5/2014Critical Elements Corporation Achieves Lithium Carbonate Pur...
6/13/2014Critical Elements Corporation: Annual Meeting
5/14/2014Critical Elements Corporation Sends Samples of Lithium Conce...
5/13/2014Critical Elements Corporation Closes the Sale of the Croinor...
9/23/2013Reports Robust Tantalum Recoveries in Optimization Batch Tes...
9/5/2013Reports Positive Optimization Metallurgical Test Results Wit...
9/5/2013Reports Positive Optimization Metallurgical Test Results Wit...
8/6/2013Retains SGS Mineral Services in Lakefield to Complete Optimi...
4/11/2013Hires Paradox for IR
3/19/2013Announces Closing of Second Tranche of $604,000
2/12/2013Discovers Extension of JR Zone at 500 Meters West With High ...
11/12/2012Announces Pre-Development Agreement With the Grand Council o...
9/11/2012is Proud to Name Ron MacDonald as Executive Chairman and to ...
7/12/2011Initiates the Environmental Impact Assessment for the Rose T...
5/18/2011Environmental Study
3/9/2011New OTCQX Stock Symbol
2/17/2011First Gold Changes its Name to Critical Elements
4/4/2008Breaking news
3/24/2008Announce that is has started the application process for a F...
3/17/2008Increased by 50,000 the number of common shares
2/28/2008Announce the nomination of Mr. Denis Simoneau as Chairman
2/8/2008Increased by 479,550 the number of common shares
1/31/2008Announce that Mr. Eric Leboeuf has been appointed President ...
12/20/2007Breaking news
Comments closed
 
Latest comment posted for this article
Be the first to comment
Add your comment
TSX-V (CRE.V)
0.850-1.16%
TSX-V
CA$ 0.850
11/26 10:06 -0.010
-1.16%
Prev close Open
0.860 0.850
Low High
0.850 0.850
Year l/h YTD var.
0.225 -  0.960 123.68%
52 week l/h 52 week var.
0.225 -  0.960 54.55%
Volume 1 month var.
10,528 18.06%
24hGold TrendPower© : 20
Produces
Develops
Explores for Copper - Gold - Lithium - Silver - Tantalum - Zinc
 
 
 
Analyse
Interactive chart Add to compare
Interactive
chart
Print Compare Export
Last updated on : 12/1/2010
You must be logged in to use the porfolio and watchlists (free)
Top Newsreleases
MOST READ
Annual variation
DateVariationHighLow
2020129.73%0.550.17
2019-49.32%0.790.26
2018-57.06%1.740.65
2017233.33%1.860.48
2016168.42%0.750.14
 
5 years chart
 
3 months chart
 
3 months volume chart
 
 
Mining Company News
Plymouth Minerals LTDPLH.AX
Plymouth Minerals Intersects Further High Grade Potash in Drilling at Banio Potash Project - Plannin
AU$ 0.12-8.00%Trend Power :
Santos(Ngas-Oil)STO.AX
announces expected non-cash impairment
AU$ 6.38-2.30%Trend Power :
Oceana Gold(Au)OGC.AX
RELEASES NEW TECHNICAL REPORT FOR THE HAILE GOLD MINE
AU$ 1.79+2.29%Trend Power :
Western Areas NL(Au-Ni-Pl)WSA.AX
Advance Notice - Full Year Results Conference Call
AU$ 2.26+2.26%Trend Power :
Canadian Zinc(Ag-Au-Cu)CZN.TO
Reports Financial Results for Q2 and Provides Project Updates
CA$ 0.12+4.55%Trend Power :
Stornoway Diamond(Gems-Au-Ur)SWY.TO
Second Quarter Results
CA$ 0.02+100.00%Trend Power :
McEwen Mining(Cu-Le-Zn)MUX
TO ACQUIRE BLACK FOX FROM PRIMERO=C2=A0
US$ 0.94-2.09%Trend Power :
Rentech(Coal-Ngas)RTK
Rentech Announces Results for Second Quarter 2017
US$ 0.20-12.28%Trend Power :
KEFIKEFI.L
Reduced Funding Requirement
GBX 1.55-7.46%Trend Power :
Lupaka Gold Corp.LPK.V
Lupaka Gold Receives First Tranche Under Amended Invicta Financing Agreement
CA$ 0.04-12.50%Trend Power :
Imperial(Ag-Au-Cu)III.TO
Closes Bridge Loan Financing
CA$ 3.41-1.16%Trend Power :
Guyana Goldfields(Cu-Zn-Pa)GUY.TO
Reports Second Quarter 2017 Results and Maintains Production Guidance
CA$ 1.84+0.00%Trend Power :
Lundin Mining(Ag-Au-Cu)LUN.TO
d Share Capital and Voting Rights for Lundin Mining
CA$ 9.78+0.93%Trend Power :
Canarc Res.(Au)CCM.TO
Canarc Reports High Grade Gold in Surface Rock Samples at Fondaway Canyon, Nevada
CA$ 0.14+0.00%Trend Power :
Havilah(Cu-Le-Zn)HAV.AX
Q A April 2017 Quarterly Report
AU$ 0.17+1.18%Trend Power :
Uranium Res.(Ur)URRE
Commences Lithium Exploration Drilling at the Columbus Basin Project
US$ 6.80-2.86%Trend Power :
Platinum Group Metals(Au-Cu-Gems)PTM.TO
Platinum Group Metals Ltd. Operational and Strategic Process ...
CA$ 2.99+1.70%Trend Power :
Devon Energy(Ngas-Oil)DVN
Announces $340 Million of Non-Core Asset Sales
US$ 15.15+4.63%Trend Power :
Precision Drilling(Oil)PD-UN.TO
Announces 2017Second Quarter Financial Results
CA$ 8.66-0.35%Trend Power :
Terramin(Ag-Au-Cu)TZN.AX
2nd Quarter Report
AU$ 0.04+0.00%Trend Power :