Blue Note and Critical Elements extend completion of Croinor acquisition
April 12 2012 - 8:30AM
PR Newswire (Canada)
MONTREAL, April 12, 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 May 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 gold properties located in the
prolific Val d'Or region of Quebec. Blue Note also holds
significant positions in the share capital of Amex Exploration
(AMX.V) and GeoVenCap (GOV.V). 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 gold project located in Val d'Or, Quebec. 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 President514-486-3095
x236jmayer@bluenotemining.cawww.bluenotemining.caCritical Elements
shareholders, please contact:Jean-Sebastien Lavallee, P. Geo,
President &
CEO819-354-5146president@cecorp.cawww.cecorp.caParadox Public
RelationsJean-Francois Meilleur514-341-0408 Media:Frederic
BerardVice President, Financial and Regulatory Affairsand General
Manager, MontrealHKDP Communications and Public
Affairs514-395-0375fberard@hkdp.qc.ca
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