QUEBEC - Quest Rare Minerals of Toronto has completed a $51.75 million new issue, much of which will be used to fund the pre-feasibility study of its Strange Lake B zone 175 km northeast of Schefferville. A portion of the net proceeds will also be used for exploration at the company's Misery Lake rare earth property 120 km to the south.
Quest has issued approximately 9.4 million units priced at $4.25 per unit and 2.3 million flow-through shares at a price of $5.00 per share. Each unit is comprised on one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional Quest share at a price of $5.00 until April 21, 2012.
Earlier this year the company released a 43-101 preliminary resource estimate for the B zone of approximately 115.0 million tonnes of inferred resources with a total rare earth oxide grade of 1.0% using a cutoff grade of 0.85% TREO. Moreover, the zone is rich in heavy rare earth oxides (HREO).
The preliminary economic assessment of the Strange Lake project calls for a 4,000-t/d open pit mine with the ore pumped to a beneficiation-leach-solvent extraction facility. Total capital expenditures are estimated to be $563.4 million.
Details are available at www.QuestRareMinerals.com.