Rare Earth Metals is changing its name to Canada Rare Earth Corporation

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Rare Earth Metals

Rare Earth MetalsTHUNDER BAY – Mining News – Rare Earth Metals is changing its name to Canada Rare Earth Corporation stated Tracy A. Moore, President and CEO of the Company reporting on the results of the Annual and Special Meeting held on December 17, 2012. “All motions were passed with an overwhelming majority including the reappointment of the Company’s five directors; the name change to Canada Rare Earth Corporation and a modification to the Company’s Stock Option Plan”, stated Moore.

Annual General Meeting

The Company’s five directors are: Rojer Li, the Company’s Chairman; Tracy A. Moore, the Company’s Chief Executive Officer and President; Bill Purcell; Peter Shearing; and Michael Stares, the Company’s former Chief Executive Officer and President.

The Company’s Stock Option Plan now allows for up to 28,552,428 shares to be issued to senior personnel, consultants, advisors, employees, officers and directors.

The Company will proceed to change its name to Canada Rare Earth Corporation to better reflect the importance of Canada in the global rare earth market.

Vertical Integration Implementation Services Agreement

Tracy A. Moore is also pleased to announce a two year agreement with CEC Rare Earth Corporation (“REC”) whereby REC will assist with the implementation of REM’s vertical integration strategy. In September, 2012 REC and REM formed a strategic alliance to develop a strategy aimed at establishing REM as a vertically integrated rare earth business. This two year implementation agreement supersedes the original strategic advisory services engagement, strengthens the relationship between REM and REC and signals the beginning of the implementation stage.

In particular, REC’s services for this implementation agreement shall include:

  • providing strategic guidance to REM
  • sourcing rare earth concentrate input to refineries
  • arranging inventory for resale by REM from China and elsewhere
  • arranging customers for REM
  • introducing rare earth refineries to REM for purchase, investment, partnering or contract services
  • designing and building one or more rare earth refineries for REM, if viable and practical
  • introducing opportunities to REM for downstream business expansion
  • preparing and revising financial models for REM, and
  • conducting due diligence in support of investment opportunities for REM which were introduced by REC.

REC shall be paid $25,000 per month during the two year term of this engagement plus expenses and additional costs as approved by REM. Additionally, REC may be eligible for success-based bonuses based on the achievement of pre-determined milestones. The basis for and quantum of each bonus will follow industry norms to the extent possible. Either party may terminate the implementation agreement with three months written notice.

REC and an affiliated company were previously granted options to acquire 5,000,000 shares of REM at 10 cents per share, exercisable for five years and subject to the terms of REM’s Stock Option Plan including vesting in four equal installments over 18 months. An additional vesting requirement was imposed on 2,850,000 of these shares under option – 712,500 shares shall be released from the second vesting provision with each multi-year letter of intent arranged by REC on behalf of REM for the supply of rare earth concentrate or the sale of rare earth oxides. The options shall be subject to approval by regulatory authorities, as applicable.

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