- Canada Rare Earth Corp. (TSXV:LL) signed a supply agreement with a state-owned Congolese company that will become its wholly owned subsidiary
- This agreement is intended to enhance Canada Rare Earth’s supply chain of rare earths and other essential minerals sourced in the DRC and has been in the works since February 2024
- Work was underway to explore mineral concessions for acquisition, intending to secure two to three exclusive sources of rare earth concentrate and other minerals for purchase and operation by the end of this year
- Canada Rare Earth Corp. last traded at $0.025 per share
Canada Rare Earth Corp. (TSXV:LL) signed a supply agreement with a state-owned Congolese company that will become its wholly owned subsidiary.
The Vancouver-based miner announced the deal was reached with Simba Essential Minerals S.A.S, which will be a wholly owned subsidiary of Canada Rare Earth and Sakima SA.
“By securing a reliable supply of high-quality rare earth minerals from the Democratic Republic of Congo (DRC), we strengthen our supply chain and competitive position, positioning the company for future success,” Canada Rare Earth CEO Peter Shearing said in a news release.
“This supply agreement with SAKIMA is another major milestone in the expansion of the company’s rare earths supply chain in DRC,” Essential Minerals’ president and CEO, Steve Sadiki added. “The concession which the supply agreement provides access to are known to have very high mineral grades and we look forward to the resulting robust margins on our sales.”
This agreement is intended to enhance Canada Rare Earth’s supply chain of rare earths and other essential minerals sourced in the DRC and has been in the works since February, when the company announced it was establishing its proprietary rare earth supply chain in the DRC.
At the time, the companies stated that rare earth concentrate supply is expected to ramp up from 100 to 500 tons per month by mid-2024 and that work was underway to explore mineral concessions for acquisition, intending to secure two to three exclusive sources of rare earth concentrate and other minerals for purchase and operation by the end of this year.
Sakima SA, a state-owned mining entity in the DRC, holds extensive mining rights and operates significant production infrastructure across several provinces.
Canada Rare Earth Corp. is developing an international, vertically integrated business within the global rare-earth industry.
Canada Rare Earth Corp. (TSXV:LL) last traded at $0.025 per share and is up 25 per cent this week.
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(Image source: Canada Rare Earth Corp.)
