Quantum Rare Earth Developments raises $0.4 mln to advance Elk Creek project

Quantum Rare Earth Developments Corp. (CVE:QRE) (OTCQX:QREDF) has closed a private placement financing raising almost $0.4 million. 

The placement was made up of 2.98 million units at a price of 12.5 cents each, for total proceeds of $373,020. 

Each unit consists of one common share and one share purchase warrant, with every warrant allowing the holder to buy another share at a price of 25 cents for a period of two years. 

The new funds will be used to advance the company's Elk Creek carbonatite project, as well as for general working capital.

Situated in the mining friendly state of Nebraska, Quantum says its Elk Creek carbonatite niobium project is the only significant niobium deposit in the U.S., where 100% of its niobium needs are imported. 

This year saw U.S. legislation naming niobium as a strategic and critical metal, highlighting the importance of the mineral for both economic and military uses.  

With the  size and grade of this mineral deposit, the company says it is garnering the attention of "a number of significant domestic and international corporations".

Indeed, the deposit has an NI 43-101 resource of 19.3 million tonnes grading 0.67% in the indicated category, containing over 129,182 tonnes of Nb2O5, and 83.3 million tonnes grading 0.63% in the inferred category, containing over 129,182 tonnes of Nb2O5. 

Niobium is used in the production of high-grade structural steel, and is used in super alloys for applications like jet engine parts, gas turbines and electronic components. 

"Although challenging financial markets persisted throughout the year, we have succeeded in expanding the number of potential partners we are discussing the Elk Creek project with," says Peter Dickie, who was again re-appointed president and CEO at the annual general meeting earlier this month. 

"With these discussions continuing on several fronts, we hope to reach a successful conclusion with one or more of the parties early in the new year."  

In late November, Quantum Rare Earth announced that mining engineer Claude Dufresne, previously on the company's technical advisory board, joined its board of directors.