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VANCOUVER, Dec. 3 /CNW/ - EMC Metals Corp. (the "Company") (TSX: EMC) is pleased to announce that it has closed a second tranche of a non-brokered private placement of 11,035,000 common shares at $0.19 per share, for proceeds of $2,096,650. When combined with the first tranche announced on November 25, 2010, the Company raised a total of $3.6 million by issuing 18,929,740 common shares. No warrants or finders fees were issued or paid in connection with the financing.
Including the financing announced November 8, 2010, in the last four weeks, the Company completed three financing rounds for total cash proceeds to the Company of $4,206,650.
The proceeds from the financings will be used for metallurgical test work and project development work on the Company's Nyngan Scandium Project Joint Venture in New South Wales (NSW), Australia, and for general working capital.
George Putnam, CEO of EMC commented as follows:
"These recent successful financing rounds provide us with the funding necessary to meet a series of milestones in the development of our Nyngan Scandium Project in Australia. The Nyngan project is on a fast track timeframe to bankable feasibility in early 2012, to satisfy markets for scandium oxide that are largely unsatisfied at this time. The project offers an attractive time-to-market production schedule, and these recent funding rounds now give us the financial resources to keep that schedule on track."
About EMC Metals
EMC Metals is focused on application of its in-house and patented mineral recovery technologies to deliver value in specialty metal and rare earth projects. EMC's high priority development opportunity is the Nyngan Scandium Joint Venture with Jervois Mining Ltd. of Melbourne, Australia. The Company released results of it's first National Instrument ("NI") 43-101 resource estimate for the Nyngan Scandium Project in March 2010, announcing a measured and indicated resource of 12 million tonnes, grading 261ppm Sc, based on a cut-off grade of 100ppm Sc (NI 43-101 Technical Report on Nyngan Scandium, Jervois Mining Limited, Nyngan, New South Wales, Australia, March 25, 2010). The Company is currently doing metallurgical test-work on the Nyngan resource material, to define and refine flow sheet studies, recovery estimates and capital cost estimates for the project.
EMC also holds two tungsten assets; the Springer Tungsten property in Nevada, USA and the Fostung Tungsten project in Ontario, Canada. Both tungsten assets have NI 43-101 compliant resource estimates, and the full reports are available on the Company website and online at www.SEDAR.com. The Springer Tungsten asset is currently offered for sale, and interested parties are encouraged to contact the investor relations number below for more information. The Company also holds the Carlin Vanadium property, near Carlin, Nevada, with a recently released NI 43-101 inferred resource estimate of 25.4 million tonnes, grading 0.515% V(2)O5, based on a cut-off grade of 0.30%, or 289 million lbs of total contained V(2)O5 (NI 43-101 Technical Report on Resources, EMC Metals Corp., Carlin Vanadium Project, Carlin, Nevada, April 30, 2010).
Technical information in this news release has been reviewed by Gilles R. Dessureau, M.Sc. P.Geo a Qualified Person for the purposes of NI 43-101. Mr Dessureau is a Professional Geologist employed by EMC Metals.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This press release contains forward-looking information that involves various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance. There are numerous risks and uncertainties that could cause actual results and EMC's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, EMC assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
For further information: For further information: EMC Metals Corp., Investor Relations: (604) 648-4653 or [email protected]