Canada Rare Earth Corporation has entered into an agreement to purchase 60% of the shares of a Lao company which owns a rare earth separation refinery in Laos.
LaosCo owns a full capability rare earth refinery that is designed to process monazite rare earth concentrate and separate the concentrate into the entire spectrum of commercially traded rare earths including light and heavy elements. LaosCo’s future development plans entail extending capabilities to include rare earth metal making.
The configuration of the refinery is based on years of design, construction and operating experience in separating rare earth concentrates into individual rare earth oxides to at least 99.99% purity.
The engineering team that designed and built the refinery has built 10 similar refineries that each produce over 3000 tonnes annually of rare earths, including heavy and light elements.
As a part of the transaction the refinery will become a core element in Canada Rare Earth's operations. The company will market internationally and sell products directly to customers globally.
Once the purchase of the shares closes, shareholders of LaosCo will be responsible for contributing their respective pro-rata share of working capital requirements.
Additionally, shareholders will be responsible for their pro-rata share of future, agreed upon capital expenditures, such as for extending the refinery's capabilities to rare earth metal making utilizing the oxide production.
Canada Rare Earth Corp is developing an international vertically and horizontally integrated business within the global rare earth industry. Its key focus is to generate revenues and positive cash flow from a variety of profit centres in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms.