Blue Note and Critical Elements extend completion of Croinor acquisition
17 January 2012 - 12:30AM
PR Newswire (Canada)
MONTREAL, Jan. 16, 2012 /CNW Telbec/ - Blue Note Mining Inc. ("Blue
Note") and Critical Elements Corporation ("Critical Elements")
report that they have agreed to extend the term of the binding
agreement announced on July 19, 2010 (the "Agreement") providing
for the acquisition by Blue Note of all of Critical Elements'
interests in the Croinor gold project located near Val-d'Or,
Quebec. Under the terms of the Agreement, Blue Note now has until
March 31, 2012, or such other later date as mutually agreed by Blue
Note and Critical Elements, to make a final payment of $2,250,000
to complete the transaction. In addition, Blue Note shall issue
17.5 million common shares to be held in escrow, for release at a
rate of 500,000 shares per month over 35 months from the date of
closing. The transaction includes Critical Elements' 71% ownership
in the Matchi-Manitou property. About Blue Note Mining Blue Note
Mining is a mineral exploration and mining company headquartered in
Montreal with properties located in known gold regions of Canada,
including the prolific Val-d'Or region of Quebec and northern New
Brunswick. About Critical Elements Corporation Critical Elements is
actively developing its 100%-owned Rose lithium-tantalum flagship
project located in Quebec. A recent financial analysis of the Rose
Project based on price forecasts of US$260/kg ($118/lb) for
Ta(2)O(5) contained in a tantalite concentrate and US$6,000/t for
lithium carbonate (Li(2)CO(3)) show an after-tax Internal Rate of
Return (IRR) of an estimated 25% for the Rose Project, with an
estimated Net Present Value (NPV) of CA$279 million at an 8%
discount rate. The payback period is estimated at 4.1 years. The
pre-tax IRR is estimated at 33% and the NPV at $488 million at a
discount rate of 8%. (Mineral resources that are not mineral
reserves do not have demonstrated economic viability). The project
hosts a current NI 43-101-compliant Indicated resource of 26.5
million tonnes of 1.30% Li(2)O Eq. or 0.98% Li(2)O and 163 ppm
Ta(2)O(5) and an Inferred resource of 10.7 million tonnes of 1.14%
Li(2)O Eq. or 0.86% Li(2)O and 145 ppm Ta(2)O(5). Critical Elements
has commissioned a prefeasibility study for the project from
Genivar, one of the largest independent engineering firms in
Canada. Genivar is also doing an environmental study, and Acme
Metallurgical Ltd. of Vancouver is carrying out project metallurgy.
Critical Elements' portfolio also includes rare-earth and
tantalum-niobium projects in the Rocky Mountains of British
Columbia and in Quebec, as well as a 50% interest in the Croinor
project, which is located in Quebec and hosts a current NI
43-101-compliant measured and indicated resource of 814,228 tonnes
at 9.11 g/t Au, for 238,414 ounces of gold at a 5 g/t cut-off.
Forward-Looking Statements This news release contains discussion of
items that may constitute forward-looking statements within the
meaning of securities laws that involve risks and uncertainties.
Although the company believes the expectations reflected in such
forward-looking statements are based on reasonable assumptions, it
can give no assurances that its expectations will be achieved.
Factors that could cause actual results to differ materially from
expectations include the effects of general economic conditions,
actions by government authorities, uncertainties associated with
contract negotiations, additional financing requirements, market
acceptance of the Company's products, technical uncertainties
associated with operating an underground mine and competitive
pressures. These factors and others are more fully discussed in
Company filings with Canadian securities regulatory authorities.
"Neither the 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." BLUE NOTE MINING INC. CONTACT: Blue Note
shareholders, please contact:Jean MayerExecutive Vice
President(800) 937-3095 x
236jmayer@bluenotemining.cawww.bluenotemining.caCritical Elements
shareholders, please contact:Jean-Sébastien Lavallée, P. Geo,
President &
CEO819-354-5146president@cecorp.cawww.cecorp.caParadox Public
RelationsJean-François Meilleur514-341-0408 Media:Frédéric
BérardVice President, Financial and Regulatory Affairsand General
Manager, MontrealHKDP Communications and Public
Affairs514-395-0375fberard@hkdp.qc.ca
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