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RARE EARTH METALS ANNOUNCES LETTER OF INTENT WITH NORTH AMERICAN PALLADIUM ON
THE LYNN GABBROS, MANITOBA
NICKEL PROJECT
June 15, 2005
TSX Venture: REM
Rare Earth Metals Corp. (“the Company”) has signed a Letter of Intent (LOI) to
enter into an Option Joint Venture Agreement with Lac des Iles Mines Ltd. (“LDI”),
a wholly-owned subsidiary of North American Palladium Ltd., (NAP-TSX) (“NAP”).
Under the terms outlined in the LOI, Rare Earth Metals will grant to LDI the
exclusive option (the “Option”) to earn up to 65 percent in REM’s interest in
the Property. The terms of the Option require LDI to complete an aggregate of
$1.4 Million CND in exploration activity and make payments of $550,000 CND over
a 4 year period to earn 50%. A further 15% may be earned following completion of
an industry standard feasibility study.
The underlying agreement with Strider Resources provides REM an option to earn a
100% interest in the 2,796 hectare Lynn Gabbros nickel-copper properties in
Manitoba, Canada. The five Lynn Gabbros properties are all within 3 km of road
access to the infrastructure provided by the mining community of Lynn Lake,
Manitoba. The property is approximately 300 km from the city of Thompson,
Manitoba, the location of the fully integrated nickel mining, milling and
smelting complex operated by INCO (N-TSX).
NAP plans to begin a high resolution airborne geophysical survey as soon as
possible and anticipates field work will be ongoing throughout the summer. The
property is amenable to summer and winter exploration programs.
Historically, Lynn Lake is the third largest nickel producing region in Canada.
Sherritt Gordon Mines Ltd. mined the Lynn Lake nickel-copper deposits from
1953-1976. These mined deposits were discovered in two mafic-ultramafic
intrusive bodies, known as the “Main” and the “El” gabbroic plugs. The Main and
El gabbroic plugs produced 20,151,146 tonnes of ore at an average grade of
1.023% Ni and 0.535% Cu from three mines over the 24 year period.
The five optioned claim blocks cover the known extent of five separate
mafic-ultramafic bodies which have noted similarities to the two mined
intrusions. The geometry, styles of mineralization and other important geologic
features of the mined deposits are well documented and are described in detail
in the Manitoba Department of Energy and Mines Economic Geology Report ER79-3 by
R.H. Pinsent
REM president, John Roozendaal states, “We are delighted that North American
Palladium shares our view that the Lynn Gabbros claims have the potential to
host economic Nickel-Copper-Cobalt PGE deposits and that they warrant an
aggressive exploration campaign. Their experience and expertise will serve Rare
Earth Metals’ shareholders well. From a business perspective, we believe this
joint venture arrangement to be an excellent model to move the Lynn Gabbros
properties forward in what clearly has become a challenging time for junior
exploration companies.
North American Palladium Ltd., Canada's only primary producer of palladium, is
the owner/operator of the Lac des Iles mine, located 85 kilometers northwest of
Thunder Bay, Ontario. The Lac des Iles deposit contains one of the largest open
pit bulk mineable palladium reserves in the world.
Rare Earth Metals Corp is a Canadian based junior exploration Company with a
portfolio of Precious, Base and Specialty metals exploration projects, in
Manitoba and Nevada. .
To contact the Company, please call at 1-866- 816-0118 or 604-986-2020, e-mail
at info@rareearthmetals.net or visit the web site at www.rareearthmetals.net
On behalf of the board;
John Roozendaal B.Sc.
President, CEO and Director
The TSX Venture exchange does not accept responsibility for the adequacy or
accuracy of this release.
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