MONTREAL, Jan. 16, 2012 /CNW Telbec/ - Blue Note Mining Inc. (TSX.V:
BNT) ("Blue Note") and Critical Elements Corporation (TSX.V: CRE)
("Critical Elements") report that they have agreed to extend the term
of the binding agreement announced on July 19, 2010 (the "Agreement")
providing for the acquisition by Blue Note of all of Critical Elements'
interests in the Croinor gold project located near Val-d'Or, Quebec.
Under the terms of the Agreement, Blue Note now has until March 31,
2012, or such other later date as mutually agreed by Blue Note and
Critical Elements, to make a final payment of $2,250,000 to complete
the transaction. In addition, Blue Note shall issue 17.5 million common
shares to be held in escrow, for release at a rate of 500,000 shares
per month over 35 months from the date of closing. The transaction
includes Critical Elements' 71% ownership in the Matchi-Manitou
About Blue Note Mining
Blue Note Mining is a mineral exploration and mining company
headquartered in Montreal with properties located in known gold regions
of Canada, including the prolific Val-d'Or region of Quebec and
northern New Brunswick.
About Critical Elements Corporation
Critical Elements is actively developing its 100%-owned Rose
lithium-tantalum flagship project located in Quebec.
A recent financial analysis 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) show an after-tax Internal Rate of Return (IRR) of an estimated 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 do not have demonstrated economic viability).
The project hosts a current NI 43-101-compliant 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.
Critical Elements has commissioned a prefeasibility study for the
project from Genivar, one of the largest independent engineering firms
in Canada. Genivar is also doing an environmental study, and Acme
Metallurgical Ltd. of Vancouver is carrying out project metallurgy.
Critical Elements' portfolio also includes rare-earth and
tantalum-niobium projects in the Rocky Mountains of British Columbia
and in Quebec, as well as a 50% interest in the Croinor project, which
is located in Quebec and hosts a current NI 43-101-compliant measured
and indicated resource of 814,228 tonnes at 9.11 g/t Au, for 238,414
ounces of gold at a 5 g/t cut-off.
This news release contains discussion of items that may constitute
forward-looking statements within the meaning of securities laws that
involve risks and uncertainties. Although the company believes the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, it can give no assurances that its expectations
will be achieved. Factors that could cause actual results to differ
materially from expectations include the effects of general economic
conditions, actions by government authorities, uncertainties associated
with contract negotiations, additional financing requirements, market
acceptance of the Company's products, technical uncertainties
associated with operating an underground mine and competitive
pressures. These factors and others are more fully discussed in Company
filings with Canadian securities regulatory authorities.
"Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release."
SOURCE BLUE NOTE MINING INC.
For further information:
| Blue Note shareholders, please contact: |
| Jean Mayer |
Executive Vice President
(800) 937-3095 x 236
| Critical Elements shareholders, please contact: |
| Jean-Sébastien Lavallée, P. Geo, President & CEO |
| Paradox Public Relations |
| Media: |
| Frédéric Bérard |
Vice President, Financial and Regulatory Affairs
and General Manager, Montreal
HKDP Communications and Public Affairs