MONTREAL, QUEBEC--(Marketwired - Aug 7, 2014) - Critical Elements Corporation (TSX VENTURE:CRE) (CRECF) (F12.F) is pleased to announce the appointment of Matthew Lauriston Starnes as a director of the Corporation.
Mr. Lauriston Starnes is a lawyer with over 17 years of experience and the capacity to work in all areas of law, including civil law, common law, contract negotiation and drafting, arbitration, taxes and permits and government relations. Mr. Starnes is currently legal counsel for Sumitomo Corporation's Mineral Resources Division in Tokyo, Japan. Among other things, he was responsible for negotiating the joint venture agreement with a Canadian partner, the financing agreement with Japanese lenders and offtake and distribution agreements with Japanese and other worldwide buyers for the Sierra Gorda project in Chile. He was also responsible for negotiating power, railway, port and transportation infrastructure agreements and helping the proponents establish good governance procedures for the project. He is also part of the team for the Ambatovy project in Madagascar, where he participated in preparing for completion, settlement negotiation with Korean contractors and sits on a number of committees. Prior to joining Sumitomo, he also was the General Counsel and Deputy CEO for the Ambatovy project. Mr. Starnes has also practiced as a corporate lawyer with major law firms in Montreal.
"With his many years of experience, Matthew Starnes will bring experience in legal matters and governance to Critical Elements Corporation," said Jean-Sébastien Lavallée, President and Chief Executive Officer.
The Corporation has granted Mr. Lauriston Starnes 200,000 stock options, each of which entitles its holder to acquire one common share for $0.275 until August 7, 2019.
About Critical Elements Corporation
Critical Elements Corporation is actively developing its 100%-owned Rose lithium-tantalum flagship project in Quebec.
A recent financial analysis (Technical Report and preliminary economic assessment (PEA) on the Rose Lithium-Tantalim 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 that are not mineral reserves and do not have demonstrated economic viability). (See press release dated November 21, 2011.)
The operation is scheduled to produce 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.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains "forward-looking information" including without limitation statements relating to realization of resource estimates, reduction of capital and operating costs, success of mining operations and the ranking of the project in terms of production. Readers should not place undue reliance on forward-looking statements.
Forward-looking 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 the forward-looking statements. Until a positive feasibility study has been completed, and even with the completion of a positive feasibility study, there are no assurances that the Rose project will be placed into production. Factors that could affect the outcome include, among others: the actual results of development activities; project delays; inability to raise the funds necessary to complete development; general business, economic, competitive, political and social uncertainties; future prices of metals; availability of alternative lithium or tantalum sources; actual rates of recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war; delays in obtaining governmental approvals, necessary permitting or in the completion of development or construction activities. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to the Company's filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
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