A previously announced option for North America’s Quantum Rare Earth Developments to sell an 80% interest in its Australian properties has been finalized with Florella Holdings.
Florella has assigned a portion of its interest to a Perth-based third party, Victory Mines, which is finalizing its initial public offering. Victory’s subsidiary Northeast Minerals is also a joint venture partner.
The terms of the agreement include Quantum retaining a 20% interest, Florella retaining a 10% share and Victory earning the remaining 70% interest upon completion of the transfer. Victory will be required to reimburse Quantum for exploration costs at the Australian properties during 2011, estimated at about $100,000.
Quantum’s Australian properties comprise the Jungle Well project, about 40km west of Leonora in Western Australia and 150km southwest of Lynas Corporation’s Mt Weld rare earths mine, as well as the Laverton property, which is about 45km north of Mount Weld. A surface exploration program in 2011 on the Jungle Well property showed highly elevated Total Rare Earth Oxides (TREO) values of 0.93% to 12.80%.
Victory says the agreement will enable it to focus exploration for rare earth elements (REE), copper and base metals with potential for uranium and gold in Western Australia.
Quantum is developing the Elk Creek Carbonatite, the only primary niobium deposit known to be under development in the US, and the highest grade undeveloped niobium deposit in North America. Niobium is mainly used in the form of Ferro-Niobium to produce high-strength, low alloy steel, to produce lighter, stronger steel for use in automotive, structural and pipeline industries.