/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
MONTREAL, May 18, 2016 /CNW/ - Critical Elements
Corporation ("Critical Elements" or the "Company") (TSX-V: CRE)
(US OTCQX: CRECF) (FSE: F12) is pleased to announce that it has
entered into an agreement with Canaccord Genuity Corp. (the
"Underwriter"), to sell 14,000,000 common shares (the "Common
Shares") on a bought deal private placement basis at a price of
C$0.37 per share for gross proceeds
of C$5,180,000 (the
"Offering"). In addition, the Company will grant the
Underwriter an over-allotment option, exercisable prior to the
closing of the Offering, to purchase from the Company up to an
additional 2,750,000 common shares at C$0.37 per share to raise additional gross
proceeds of up to C$1,017,500.
The Underwriter will receive a cash commission of 7% of the
gross proceeds raised, and non-transferable share purchase warrants
entitling the Underwriter to purchase, at the price of the Offering
within 24 months after closing of the Offering, Common Shares equal
to 7% of the aggregate number of securities sold pursuant to the
Offering. Canaccord Genuity will also be issued an additional
200,000 Common Shares as a corporate finance fee.
The Company intends to use the net proceeds for exploration and
development of the Company's projects and for general working
capital purposes.
Closing of the Offering is anticipated to occur on or before
June 7, 2016 and is subject to
receipt of applicable regulatory approvals including approval of
the TSX Venture Exchange. Securities issued under the
Offering and through the over-allotment option will be subject to a
four month hold period which will expire four months from the date
of closing.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within
the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
About Critical Elements Corporation
A recent financial analysis (Technical Report and Preliminary
Economic Assessment (PEA) on the Rose lithium-tantalum Project,
Genivar, December 2011) 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) showed an
estimated after-tax Internal Rate of Return (IRR) of 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 are not mineral reserves and do not have
demonstrated economic viability). (The preliminary economic
assessment is preliminary in nature). (See press release
dated November 21, 2011.)
The conclusions of the PEA indicate the operation would support
a production rate of 26,606 tons of high purity (99.9% battery
grade) Li2CO3 and 206,670 pounds of
Ta2O5 per year over a 17-year mine life.
The project hosts a current 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.
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.
SOURCE Critical Elements Corporation