Texas Mineral Resources Signs $6 Million Financing Memorandum of Understanding for the Round Top Heavy Rare Earth Project in Texas
SIERRA BLANCA, TX--(Marketwired - Nov 17, 2017) - Texas Mineral Resources Corp. (OTCQX: TMRC)
- Mining industry investor group would own 49% of a newly formed Round Top Minerals Ltd. Entity
- Financing is estimated to provide Round Top Project funding through full bankable feasibility study
- American Mineral Reclamation subsidiary ownership remains 100% owned by TMRC and is unaffected by the MOU
Texas Mineral Resources Corp. (TMRC), an exploration company targeting the heavy rare earths and a variety of other high-value elements and industrial minerals, is pleased to announce the Company has signed a memorandum of understanding ("MOU") with an investor group led by several mining industry executives for a $6 million equity funding of a newly formed Round Top Minerals entity.
Under the terms of the MOU, the investor group is granted up to a 180 day due diligence period in order to complete the financing. The investor group would own 49% of the Round Top Minerals entity with TMRC shareholders owning 51%. The investor group would be entitled to two board seats on the newly formed entity. TMRC would also be entitled to two board seats with a fifth to be jointly determined. It is anticipated that the proposed funding would be used to fund a full bankable feasibility study for the Round Top Project.
Of note, TMRC's American Mineral Reclamation subsidiary is not affected by this transaction and remains 100% owned by TMRC. Ongoing work such as the recent DOE grant relating to the rare earth from coal initiative or projects relating to reclamation of strategic metals from wastewater and scrap material are part of the American Mineral Reclamation subsidiary. TMRC is seeing multiple potentially lucrative project opportunities in this subsidiary.
Dan Gorski, CEO, commented, "We believe this MOU offers TMRC the opportunity to bring this project to feasibility under favorable terms, without suffering dilution to our shareholders."
Anthony Marchese, chairman, further commented, "The Round Top Heavy Rare Earth Project represents an unusually rich, long-lived multi-metal deposit -- whether the target is the critical Rare Earths, lithium, uranium or beryllium. We are gratified by such significant investor interest, and a recognition of the commitment required to bring us through to bankable feasibility. Round Top can be a part of the American renaissance in resource development, from manufacturing and the tech sector to national security applications."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities Exchange Act of 1934, as amended, including, but not limited to, statements regarding the ability of American Mineral reclamation to seek out and develop projects, success in the ability of the Company and its partners to successfully complete the MOU and the ability of the Company to maintain relationships with its current partners. When used in this press release, the words "potential," "indicate," "expect," "intend," "hopes," "believe," "may," "will," "if, "anticipate," and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such statements. Such factors include, among others, risks related to the development of the Round Top project, up-scaling of extraction testing, risks related to changes in future operating costs and working capital balance, risks related to mining results not matching preliminary tests and risks related to the ability of TMRC to raise adequate working capital and continue as a going concern, as well as those factors discussed under the heading "Risk Factors" in the Company's latest annual report on Form 10-K, as filed on November 30, 2016, and other documents filed with the U.S. Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to publicly update any forward-looking statements.
About Texas Mineral Resources Corp.
Texas Mineral Resources Corp.'s focus is exploring and, if warranted, developing its Round Top heavy rare earth and industrial minerals project located in Hudspeth County, Texas, 85 miles east of El Paso. Additionally, the Company plans on developing alternative sources of strategic elements and minerals through the environmentally beneficial processing of coal waste and other waste materials through its American Mineral Reclamation subsidiary. The Company's common stock trades on the OTCQX U.S. tier under the symbol "TMRC."
