Quantum Rare Earths inks options deal with Titan

Quantum Rare Earth Developments (CVE:QRE) has entered an options deal with Titan Goldworx Resources, the company said Tuesday.

The company said it will option off eight of its claims to its Tait property to Titan.

Under the options deal, Titan will pay Quantum’s subsidiary Silver Mountain $140,000 over four years for a 70 percent stake in the property, and also issue 150,000 shares of Titan to Silver Mountain within 30 days of completing its initial public offering.

If Titan does not complete its IPO inside a year from the closing date, Titan can issue 150,000 shares to Silver Mountain in 30 days following the closing date.

Quantum also announced on Tuesday that it kyboshed its options agreement between Silver Mountain and Rubicon Minerals (TSE:RMX). Under that deal, Silver Mountain was granted the right to acquire some mineral claims in the Thunder Bay mining division.
Silver Mountain has 12-months to leave in good standing.

On October 24 2011, Quantum and its subsidiary, Silver Mountain, alongside Rubicon Minerals entered into a termination and mutual release agreement.

Under that pact, the company said it will issue 129,032 common shares – based on a 15.5 cents closing price as of October 24 – to Rubicon in accordance to the termination agreement.

The company acquired the Tait Property and Thunder Bay Property as a result of its merger with Silver Mountain.

On re-assessing the Tait and Thunder Bay properties, Quantum determined that due to their early stage nature, efforts directed towards these properties should be minimized.

Quantum said its primary focus is to develop the Elk Creek Carbonatite project, in particular due to its large contained Niobium resource.

On a final note, Mitchell Adam’s tendered his resignation to proceed with other business ventures the company said.

Vancouver-based Quantum Rare Earth is an exploration company with a focus on seeking out potentially economic deposits of niobium and rare earth elements in North America and elsewhere in the world.

Quantum’s stock fell one penny, or 6.67 percent, to trade at 14 cents a share on Toronto’s junior venture exchange.