Quantum Rare Earth Developments Corp Has Closed a Private Placement

Quantum Rare Earth Developments Corp has closed a private placement financing raising almost USD 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 USD 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 US where 100% of its niobium needs are imported. 

This year saw US 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 said that 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.