Critical Elements Corporation (TSX
VENTURE:CRE)(OTCQX:CRECF)(FRANKFURT:F12) is pleased to announce the
signing today in Val d'Or (Quebec) of a pre-development agreement
("PDA") with the Grand Council of the Crees (Eeyou Istchee), the
Cree Regional Authority and the Cree First Nation of Eastmain
regarding the Company's development activities on its Rose
Tantalum-Lithium deposit, located in James Bay, Quebec.
Through this agreement, the parties have agreed to promote a
cooperative and mutually respectful relationship concerning the
exploration and pre-development activities of the Company in
respect of the project. Critical Elements has undertaken to provide
preferential treatment to Cree enterprises in the awarding of
certain contracts for the supply of goods. The Crees have agreed to
cooperate with the Company in the preparation of all necessary
environmental and social impact assessment studies for all
components of the project. The Crees have also committed to use
their best efforts to ensure that the project proceeds through the
environmental and social assessment process provided for in the
James Bay and Northern Quebec Agreement, and, if the environmental
and social concerns are met, to assist Critical Elements
Corporation in obtaining the required governmental approvals.
Finally, the Parties have agreed to continue their discussions
to develop and sign an Impacts and Benefits Agreement with respect
to the Rose Tantalum-Lithium mining project.
"We are very proud of this agreement as it has always been a
high priority of the Company to collaborate with local communities
towards the further development of the Rose-Lithium-Tantalum
Project. The pre-development agreement is a demonstration of the
Company's efforts to meet this objective" said Jean-Sebastien
Lavallee, President and Chief Executive Officer.
Recent Lithium Market News
Critical Elements Corporation also notes that, driven by a
significant increase in demand in the past year in the markets for
hybrid/electric vehicles, electronics and particularly energy
storage as a result of renewable energy policies in China, Japan
and the United States, the lithium market has shown considerable
strength in terms of price and demand for battery-grade material.
The current spot price in China for battery-grade lithium
carbonate, as posted on the Asian Metals website
(www.asianmetals.com), ranges from RMB 40-42/kg (US $6,290 to US
$6,600/tonne at an RMB/US$ exchange rate of 6.35).
Furthermore, on August 23, 2012, Australian hard-rock lithium
producer Talison Lithium became the target of a takeover bid by
Rockwood Holdings, a major lithium carbonate producer (brine
deposit) operating in South America. A consolidation of the lithium
market appears to be developing, with takeovers by major lithium
carbonate producers, which is a clear indication of the drive to
secure high-quality lithium carbonate supply for the emerging
battery market.
"The Talison Lithium takeover announced on August 23, 2012,
shows once again that we are seeing a major industrial revolution,
with the adoption of a technology that is increasingly powerful at
lower and lower prices. More than ever, the major players in the
battery industry are looking to secure long-term supply. With its
Rose lithium-tantalum project, Critical Elements Corporation is
well positioned to become a major producer of battery-grade lithium
carbonate and tantalum. Furthermore, on August 5, 2012, Galaxy
Lithium published an increase in the lithium carbonate price in
China, which now stands at $7,000 per tonne for battery-grade
lithium carbonate, $1,000 higher than the price used in the
Company's financial model included in its preliminary economic
assessment dated November 21, 2011" added Jean-Sebastien Lavallee,
President and Chief Executive Officer.
In the past few months, the Critical Elements team entered into
discussions with a number of potential lithium carbonate and
tantalite buyers. The Company is currently negotiating the terms of
long-term sales and risk distribution among potentiel buyers.
Jean-Sebastien Lavallee (OGQ #773), geologist, shareholder and
president and chief executive officer of the Company and a
Qualified Person under NI 43-101, has reviewed and approved the
technical content of this release.
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 Ta2O5 contained in a tantalite
concentrate and US$6,000/t for lithium carbonate (Li2CO3) 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% Li2O Eq. or 0.98% Li2O and
163 ppm Ta2O5 and an Inferred resource of 10.7 million tonnes of
1.14% Li2O Eq. or 0.86% Li2O and 145 ppm Ta2O5.
The Company is presently at the feasibility study stage on the
Rose project. Genivar is carrying out an environmental study and a
feasibility study for the surface installations, Ambuck Associates
is leading the feasibility study and doing mine design for the
study, AMEC is leading the tailings facility study, Bumigeme is
handling the concentration and carbonatization plant study, and
Acme Metallurgical Ltd. of Vancouver is responsible for the
metallurgical component of the project.
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 506,700 tonnes
at 10.66 g/t Au, for 173,700 ounces of gold at a 5 g/t cut-off.
About the Grand Council of the Crees (Eeyou Istchee)
The Grand Council of the Crees (Eeyou Istchee) is the political
body that represents the approximately 18,000 Crees or "Eeyouch"
("Eenouch" - inland dialect). The Council is constituted of twenty
(20) members including: a Grand Chief and Deputy-Grand Chief
elected at large by the Eeyouch, the chiefs elected by each of the
nine (9) recognized Cree communities, and one (1) other
representative elected by each community.
About the Cree Regional Authority
The Cree Regional Authority (CRA) was set up by virtue of the
signing of the James Bay and Northern Quebec Agreement as the
administrative arm of the Cree Nation Government. It has
responsibilities in respect to environmental protection, the
hunting, fishing and trapping regime, economic and community
development, Cree governance and other matters as decided by the
Board of Directors. The Board of Directors of the CRA is the same
joint governing body that manages the Grand Council of the Crees
and is referred to as the "Council/Board".
About the Cree Nation of Eastmain
The Cree Nation of Eastmain is located on the Eastern shore of
James Bay, at the mouth of the Eastmain River, in Eeyou Istchee,
Northern Quebec. It is responsible for providing municipal type
services and programs as well as overseeing contracts providing
federal, provincial and regional services within the community.
With just over 700 people, it is the smallest of the Cree
communities of Eeyou Istchee. With 65% of its population under the
age of 30, it is a young and dynamic community. Eastmain is in a
period of positive economic change with the construction industry
leading the way. New capital facilities are being built and an
aggressive housing development campaign is fostering opportunities
for community members to prosper economically, socially and
culturally.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) responsibility for the adequacy or accuracy of
this release.
Contacts: Jean-Sebastien Lavallee, P.Geo. President and Chief
Executive Officer 819-354-5146president@cecorp.ca www.cecorp.ca
Paradox Public Relations 514-341-0408
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