RENO, Nev.--(BUSINESS WIRE)--EMC Metals Corp. (the “Company” or “EMC”) (TSX: EMC) is pleased to announce that it has completed a 100% earn-in on both the Tørdal Scandium property, and the Høgtuva Beryllium property, approximately 3-6 months early, as a result of a renegotiated agreement with REE Mining of Norway.
“We are pleased to complete the early 100% earn-ins on both Tørdal and Høgtuva, enabling us to focus our budgets and efforts on resource development regarding both of these properties, with the support and cooperation of REE Mining”
- EMC achieves early earn-in on Tørdal property, now 100% owned,
- EMC achieves early earn-in on Høgtuva property, now 100% owned,
- Early 100% earn-ins trade cash payments for 1% NSR’s on future production,
- Norway scandium exploration work will focus on Tørdal property only,
- Company plans to relinquish earn-in rights to the Evje-Iveland property,
Discussion-Accelerated Earn-Ins For Tørdal and Høgtuva Properties
EMC originally secured a 100% earn-in option on the Tørdal and Evje-Iveland properties in May of 2011, covering approximately 320 square kilometers in southern Norway. Terms on the two stage earn-in option included cash payments (US$650,000), work commitments (US$250,000), and an EMC share grant (1M shares), with payments due in October 2012 and June 2013.
The renegotiated earn-in immediately accelerates EMC ownership of the Tørdal exploration licenses to 100%, cancels all outstanding cash payments ($500,000), and all remaining work commitments, in return for a 1% net smelter return (“NSR”) on production proceeds from the property. As part of the amended agreement, EMC relinquished all rights to the Evje-Iveland property, which have been returned to REE Mining.
A similar amended agreement has been reached with REE Mining for the Høgtuva property, a beryllium target in central Norway. The Høgtuva exploration licenses are now also 100% controlled by EMC, and all future cash payments have been replaced by a 1% production NSR on production proceeds.
Mr. George Putnam, CEO of EMC Metals comments:
“We are pleased to complete the early 100% earn-ins on both Tørdal and Høgtuva, enabling us to focus our budgets and efforts on resource development regarding both of these properties, with the support and cooperation of REE Mining”.
About EMC Metals
EMC owns a 100% interest in the Springer tungsten mine in Nevada, USA. The Company recently filed a NI 43-101 PEA on the Springer asset and is following a strategy of seeking a near term restart of the facility. EMC also owns a 100% interest in the Carlin Vanadium property near Carlin, Nevada. Both properties have current NI 43-101 Technical Reports filed on SEDAR, copies of which are also available on the Company website.
In early 2012, EMC’s earn-in on the Nyngan Scandium Project was rejected by our Australian JV partner, Jervois Mining Limited. We maintain that all earn-in conditions outlined under the JV Agreement were met, and we have now completed all legal pleadings and submissions required for a challenge to this rejection in court in Victoria, NSW, Australia, where hearings are scheduled to commence in February, 2013.
The technical information in this news release has been reviewed by Willem Duyvesteyn, a Qualified Person as defined by National Instrument NI 43-101. Mr. Duyvesteyn is employed by EMC Metals Corp.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This press release contains forward-looking information that does involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements regarding long term prices for tungsten, our ability to find and retain qualified management and key technical persons to operate the tungsten project, our ability to raise the necessary capital to fund a restart of mining operations, the short term or long term economic feasibility of tungsten production at our Springer facility, and in general statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. Forward-looking information in this press release is based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice, and by other risk factors disclosed in our public filings. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.