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SIERRA BLANCA, TX, Nov. 20, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Texas Mineral Resources Corp. (OTCQB: TMRC), an exploration company targeting high value tech metals including rare earths and a large volume of a variety of other high-value elements and industrial minerals, is pleased to announce that it has reached a development and funding agreement for its flagship Round Top project with Morzev Pty Ltd., DBA USA Rare Earth (“USA Rare Earth”), a privately-held U.S. and Australian-based investment group.
Under the terms of the Agreement, USA Rare Earth is required to expend up to $10 million via two tranches: the first $2.5 million to finish the optimization of the separation and purification processes relating to the various elements contained in the deposit. Upon successful conclusion, USA Rare Earth is then required to expend up to an additional $7.5 million to produce a bankable feasibility study. A bankable feasibility study is defined as a comprehensive study of sufficient detail and accuracy to be used for a positive decision and financing purposes, where cost estimates are equal to plus or minus 20% accuracy or better. Only upon successful conclusion of a bankable feasibility study is USA Rare Earth entitled to a 70% interest in the Round Top project. Furthermore, USA Rare Earth has an option to purchase an additional 10% interest in the Round Top project for a cash payment of $3 million to TMRC.
USA Rare Earth is a U.S. and Australian-based investment group with extensive mining experience and a significant track record of discovering and operating world-class assets. USA Rare Earth is in the process of appointing a lead banker and will be pursuing a TSX Canadian listing in the near future.
Cove Capital Pty Ltd. acted as the exclusive investment banker in the transaction.
“This is a transformative transaction for TMRC,” commented Anthony Marchese, chairman. “Round Top is a world-class rare earth deposit located just outside El Paso with favorable existing infrastructure and a one hundred-year mine life that has the potential to supply the United States with a significant amount of its rare earth needs in addition to a variety of other strategic materials. USA Rare Earth offers TMRC and its shareholders the potential to realize significant value from one of the world’s premier and lowest cost rare earth projects. Under the terms of the partnership, USA Rare Earth is highly incentivized to fund and complete a bankable feasibility study as quickly as possible so that it may vest its interest in the Round Top project. TMRC shareholders also have the ability to realize value from its American Mineral Reclamation subsidiary, which is not part of the USA Rare Earth partnership and is currently a recipient of a DoE grant in the area of profitable reclamation of rare earth elements from pre-combustion coal.”