Agreement With the Cree Nation of Eastmain and Niskamoon Corporation for the Implementation of the Eastmain River Lake Sturgeon Spawning Ground Enhancement Project
MONTREAL, QUEBEC--(Marketwired - Feb. 27, 2018) - Critical Elements Corp. (the "Company" or "Critical Elements") (TSX VENTURE:CRE)(OTCQX:CRECF)(FRANKFURT:F12) is pleased to announce an agreement with the Cree Nation of Eastmain and Niskamoon Corporation for the implementation of the Eastmain River Lake Sturgeon Spawning Ground Enhancement Project located just above Conglomerate Bridge on the James Bay Highway, 113 km from the mouth of the Eastmain river (the "Project").
On August 2, 2017, Critical Elements announced the filing of the environmental impact study ("EIS") prepared by WSP regarding the Corporation's Rose Lithium-Tantalum Project with the Environmental and Social Impact Review Committee (COMEX) and the Canadian Environmental Assessment Agency. On December 22, 2017, Critical Elements filed an updated version of the EIS. One of the various initiatives proposed in the EIS is to compensate for the potential social and environmental impacts of the Rose Lithium-Tantalum Project on fish habitats by implementing the Project.
Critical Elements is therefore very pleased that the Project is now getting underway as it is sensitive to the importance of mitigating the social and environmental impacts of its Rose Lithium-Tantalum Project on the community. Jean-Sébastien Lavallée, Critical Elements' Chief Executive Officer declared "Critical Elements is very happy to support and participate to the implementation of this great project in collaboration with Eastmain Cree Nation and Niskamoon Corporation. This agreement is directly in line with the sustaining social and environmental collaboration that Critical Elements wants to establish with the local community".
"Niskamoon is very proud to enter into a partnership for this very important habitat enhancement project, towards which we have been working with the Cree Nation of Eastmain and Hydro-Québec since 2010. We believe strongly that a healthy environment and the social well-being of the Cree Nation go hand in hand, so we are very excited that Critical Elements has come on board and we look forward to working with them to bring back the lake sturgeon population in the Eastmain River in the years to come," declared Marc Dunn, environment director, Niskamoon Corporation.
"On behalf of the families on whose hunting territories this very important project is located as well as for the people of the Cree Nation of Eastmain, we are very happy that the spawning ground enhancement is moving forward, and we are looking forward to continuing working together in the future," declared Kenneth Cheezo, Chief, Cree Nation of Eastmain and Brian Weapenicappo, tallyman for RE-02 trapline.
The Corporation is also announcing that it has granted options to directors and officers to acquire a total of 2,100,000 common shares. Each option entitles its holder to subscribe for one share of the Corporation at a price of $1.25 for a period of five years.
Paradox Public Relations will also receive 300,000 stock options to purchase the same number of common shares of the Company at a price of $1.25 per share for 2 years. These options will vest over a 12-month period at a rate of 25% per quarter. The options are granted in accordance with the Policy 4.4 of the TSX Venture Exchange and the terms and conditions of the Company's Stock Option Plan.
About Critical Elements Corporation
The Company recently released a financial analysis for Critical Elements' wholly-owned Rose Lithium-Tantalum project (Rose Lithium-Tantalum project feasibility study, WSP, October 20, 2017), which is based on price forecasts of US $750/tonne for chemical-grade lithium concentrate (5% Li2O), US $1,500/tonne for technical-grade lithium concentrate (6% Li2O) and US $130/kg for Ta2O5 in tantalite concentrate, and an exchange rate of US $0.75/CA $. The internal rate of return ("IRR") for the Rose Lithium-Tantalum project is estimated at 34.9% after tax, and net present value ("NPV") is estimated at CA $726 million at an 8% discount rate. The estimated payback period is 2.8 years. The pre-tax IRR for the Rose Lithium-Tantalum Project is estimated at 48.2% and the pre-tax NPV at CA $1,257 million at an 8% discount rate (see press release dated September 6, 2017). The financial analysis is based on the Indicated mineral resource. An Indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.
The life-of-mine (LOM) plan provides for the extraction of 26.8 million tonnes of ore, 182.4 million tonnes of waste, and 11.0 million tonnes of overburden for a total of 220.2 million tonnes of material. The average stripping ratio is 7.2 tonnes per tonne of ore. The nominal production rate is estimated at 4,600 tonnes per day, with 350 operating days per year. The open pit mining schedule allows for a 17-year mine life.
The mine will produce a total of 26.8 million tonnes of ore grading an average of 0.85% Li2O and 133 ppm Ta2O5, including dilution. The mill will process 1.61 million tonnes of ore per year to produce an annual average of 236,532 tonnes of technical- and chemical-grade spodumene concentrate and 429 tonnes of tantalite concentrate.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is described in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact
Investor relations:
Jean-Sebastien Lavallee, P. Geo.
Chairman and CEO
819-354-5146
jslavallee@cecorp.ca
www.cecorp.ca
Paradox Public Relations
514-341-0408
