Pele Mountain Agreement with SKN has Expired

Pele Mountain Resources Inc of Toronto, ON reports that the Chinese government has not given its approval for Sheng Kang Ning (Shanghai) Mining Investment Co Ltd (SKN) to use its proprietary separation technology in Elliot Lake, ON. Earlier this year, SKN signed a memorandum of understanding (MOU) with Pele under which it would design, build, and operate the rare earth processing facilities. Since the definitive joint venture has not been formed, the MOU expired automatically at the end of September. Notwithstanding the expiration of the MOU, Pele is continuing to explore opportunities to co-operate with SKN on a non-exclusive basis, and will also now begin discussions with other interested parties who possess the financial and technical capabilities to develop rare earth processing facilities. Al Shefsky, Pele’s president, said, “Profound market-related and technical challenges have created a formidable impediment to the development of new hard rock rare earth mines and highlight the need for a lower cost and lower risk approach to rare earth production. Under current circumstances, monazite processing presents a compelling opportunity to achieve timely, low cost, rare earth production in Canada. We continue to confidently advance our vision of a rare earth processing centre in Elliot Lake in co-operation with qualified partners.” Texas Rare Earth Resources Corp (TRER) of Sierra Blanca, TX has been awarded a research contract by the U.S. Defense Logistics Agency Strategic Materials Division. TRER in conjunction with its joint venture partner, K-Technologies Inc, will conduct research to demonstrate the ability to separate and refine yttrium oxide to a minimum of 99.999% purity, ytterbium oxide to a minimum of 99.99% purity and a third rare earth oxide which is not being publicly disclosed. The feedstock for the contract will come from TRER’s Round Top deposit near El Paso, TX, with processing taking place at K-Tech’s Lakeland, FL facility.

Volume 29 issue 19

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