Quantum Completes Elk Creek Acquisition
December 03 2010 - 2:05AM
Marketwired
Quantum Rare Earth Developments Corp. (TSX VENTURE: QRE)(PINK
SHEETS: QREDF)(FRANKFURT: BR3) ("Quantum", the "Company") is
pleased to announce receipt of final acceptance from the TSX
Venture Exchange for the acquisition of all of the issued and
outstanding shares of 0805904 B.C. Ltd. 0805904 B.C. Ltd. owns all
the issued and outstanding shares of Elk Creek Resources Corp.
("Elk Creek"), a private Nebraska corporation which holds
exploration lease and option to purchase agreements (the "Landowner
Agreements") with the underlying property owners, to explore,
evaluate and acquire the Elk Creek carbonatite property in southern
Nebraska.
The Company has completed the acquisition by way of a three
cornered amalgamation and as a result, Elk Creek has become an
indirect wholly owned subsidiary of the Company.
Acquisition costs were as follows: the payment of $100,000 in
due diligence fees, $490,000 in advance land acquisition costs, a
$200,000 option payment, the issuance of 18,990,539 common shares
to the shareholders of 0805904 B.C. Ltd. in exchange for their
shares; and the payment of all Elk Creek's option payments required
by the Landowner Agreements.
Quantum advises that all the above payments have been made and
further advises that the share consideration has been issued. A
total of 14,630,789 of the 18,990,539 shares issued to the former
shareholders of 0805904 B.C. Ltd. are subject to escrow provisions
providing for their release over an 18 month period from date of
issuance.
A finder's fee of 1,034,348 common shares has been issued to
Lockwood Financial Ltd. in connection with the transaction. These
shares are subject to a resale restriction of 4 months and 1 day
from their date of issuance.
Further information on these transactions is available in the
Company's news releases dated May 4, 2010, Sept. 21, 2010, and Oct.
13, 2010.
"We are extremely pleased to have finally completed all the
necessary steps to ensure ownership of this extraordinary asset,"
states Peter Dickie, President and CEO of Quantum. "We anticipate
commencing exploration and development activities as soon as
possible with the aim of bringing the historic niobium resource up
to modern reporting standards and expanding development of both the
niobium and rare earth segments of the property."
On Behalf of the Board,
Peter Dickie, President
"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."
Contacts: Quantum Rare Earth Developments Corp. Peter Dickie
President and CEO (604) 669-9330 (604) 669-9335 (FAX)
www.quantumrareearth.com
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