Innovation Metals Corp. Signs Letters of Intent with Rare-Earth Exploration & Development Companies to Fulfill Phase 1 Toll-Separation Capacity
June 17, 2013 — Toronto, Canada (PR Newswire) — Innovation Metals Corp. (“IMC” or “the Company”) today announced that it has entered into non-binding Letters of Intent (“LOIs”) with three leading rare-earth exploration and development companies (“future producers”), for the toll processing of mixed rare-earth-element (“REE”) concentrates. These concentrates will be separated into high-purity rare-earth oxides (“REOs”) and other compounds, at an independent, centralized critical REE separation facility planned for Becancour, Quebec.
Two of the future producers trade on the TSX Venture Exchange, with the third trading on the Australian Securities Exchange. They will toll feedstock concentrates rich in critical middle and heavy REEs, as well as neodymium (Nd), a critical light REE. In addition to the three new LOIs, IMC has an existing non-binding LOI in place with Geomega Resources Inc., for the processing of Nd-rich concentrates.
“We are delighted to announce these LOIs with leading companies in the rare-earth sector,” commented Patrick Wong, CEO of IMC. “The LOIs now in place represent the fulfillment of the initial 7,500 t REO / year capacity that IMC is planning for Phase 1 of the Becancour separation facility, with the potential for additional capacity requirements from the same future producers.”
IMC is also in ongoing discussions with other future producers, with a view to completing additional LOIs, to fulfill the Phase 2 capacity at the Becancour separation facility. The company has also recently invited a select number of future producers to participate in its current capital raise, as a means of securing their future separation capacity.
“We believe that toll separation via an independent facility provides the most effective means for future producers to realize the full value of their rare earths,” said Gareth Hatch, President of IMC. “Financial institutions recognize the flaw in business models based on selling intermediate REE concentrates, given the lack of customers and the significantly lower values associated with these materials.”
As announced last month, IMC has retained Collins Barrow Toronto LLP to provide advisory services on a non-brokered private financing, to raise up to $5,000,000 in gross proceeds, for its ongoing development program.
Get our daily investorintel update
About Innovation Metals Corp.
Innovation Metals Corp. (“IMC”) is a private Canadian-based company founded in 2011. IMC’s goal is to alleviate the bottleneck that has formed in the rare-earth supply chain, through the creation of the world’s first independent, centralized rare-earth separation facilities, to be located in Becancour, Quebec. The company is bridging the gap between producers and end users via the creation of a Consortium, through which it will provide low-cost material tolling programs to producers, and assuring security of supply for end users and sovereign governments.
This news release contains projections and statements that may constitute “forward-looking statements” within the meaning of applicable Canadian and United States laws. Forward-looking statements in this release may include, among others, statements regarding the future plans, costs, objectives or performance of Innovation Metals Corp. (“IMC”), or the assumptions underlying any of the foregoing. In this news release, words such as “may”, “could”, “would”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “goal”, “estimate” and similar words and the negative forms thereof are used to identify forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that are beyond IMC’s control, and which may cause the actual results, level of activity, performance or achievements of IMC to be materially different from those expressed or implied by such forward-looking statements. Such risks and uncertainties could cause actual results and IMC’s plans and objectives to differ materially from those expressed in the forward-looking information. IMC can offer no assurance that its plans will be completed. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, IMC assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>