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Canada Rare Earths Completes Acquisition of Manouane Rare Earth Project, Quebec
Vancouver, British Columbia, Canada - September 19th, 2011 - Canada Rare Earths Inc. ("Canada Rare Earths" or the "Company") (TSX Venture: V.CJC) is pleased to announce that it has completed the acquisition to acquire a 100% interest in the 6,955 hectare (69.55 km2) Manouane rare earth property (the "Manouane Property") located west of the town of La Tuque, Quebec, roughly 250 kilometers southeast of Val-D'or or 350 kilometers south of Montviel.
To complete the non-arms length transaction (the "Transaction") to acquire 100% interest in the Manouane Property, the Company has paid the vendor, Mr. Benoit Moreau, VP Exploration of the Company, (the "Vendor") $7,500 upon signing of the Letter of Intent and has issued 350,000 shares of the Company with a deemed value of $0.53 per share upon TSX Venture Exchange approval, being September 15, 2011. The Vendor will retain no royalty and there are no other royalties payable on the property.
The Transaction is a Related Party Transaction as that term is defined in Multilateral Instrument 61-101. The Transaction is exempted from the valuation and minority shareholder approval requirements of MI 61-101 by sections 5.5(a) and 5.7(a) of MI 61-101 (the fair market value of the both the asset and the consideration paid for the asset are less than 25% of the Issuer's market capitalization).
The Manouane Property covers a zone of alkaline granite where nearby geochemical anomalies in yttrium (Y), lanthanum (La) and samarium (Sm) are present. This association of rare earth elements ("REEs") may be found in geological deposits that may also contain zirconium, caesium, neodymium and gadolinium. Road access to the property is excellent.
In 1966, Wynne-Edwards completed a large scale geological survey of the region on behalf of the Geological Survey of Canada and several outcrops were mapped on the property, consisting of alkaline granite similar in composition to the Strange Lake deposit (TSX-V: QRM). The most interesting reports were released by the Ministere des Ressources Naturelles et de la Faune du Quebec in 1996 and 2009. They consisted of sediment geochemistry surveys that outlined REE anomalies (Cerium, Europium, Lanthanum, Samarium, Yttrium with Thorium and Uranium) and combined Yttrium, Niobium, and Lanthanum anomalies.
The Manouane Property is located in the central part of the Grenville Province and within the northeast limit of the Grenvillian metasedimentary central belt, a wide area dominated by metasediments.
The Company anticipates commencing exploratory work on the property this fall.
Mr. Benoit Moreau, Geo and P. Eng., Vice President of Exploration for the Company, is a Qualified Person for the purpose of NI 43-101 and has reviewed the geological information disclosed herein.
ABOUT CANADA RARE EARTHS INC.
Canada Rare Earths is a growth company focused on the exploration and development of rare earth elements led by its 100% owned Flagship Goeland Rare Earths Project within the Montviel carbonatite complex, Montviel Township Quebec, immediately adjacent to Geomega's (TSX-V: GMA) recent rare earth discovery. The Goeland property, located 215 km north of Val-d'Or, is road accessible and consists of 47 claims totaling approximately 2,600 hectares. Since the acquisition of the Goeland Project, the Company, in a short period of time, has successfully established itself in one of the largest Carbonatite complexes in North America.
For further information on Canada Rare Earths, please contact us at our Head Office.
On Behalf of the Board of Canada Rare Earths Inc.
Chad McMillan
President & CEO
Neither 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. All of the above is subject to TSX.V and regulatory acceptance.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to the Manouane Rare Earth Property, constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's planned acquisition and exploration activities. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Rare Earth’s operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's acquisition intentions and exploration activities being different than those expected by management, delays in obtaining required government and other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Rare Earths does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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