Black Sea Metal Inc. Enters Race To Build First Heavy
Rare Earths Processing Plant Outside China
Sea Metals Inc. (OTCBB: BLAK) (the “Company”) today announced that it intends to
build the first heavy rare earth element (HREE) processing plant outside China
as part of the transition of its business plan from the exploration to the
processing side of the rare earth market.
Black Sea Metals Inc. - BLAK
Austin, Texas June 21, 2012
Black Sea Metals Inc. (OTCBB: BLAK) (the “Company”) today announced that it
intends to build the first heavy rare earth element (HREE) processing plant
outside China as part of the transition of its business plan from the
exploration to the processing side of the rare earth market. The approximately
$80 million project will be located in the Black Sea region near a proximal
source of HREE feedstock.
BLAK’s new management team has been able to secure access to HREE processing
technology and relevant industrial intelligence by agreeing to enter into a
joint venture with a group of engineers who have already successfully produced
HREE oxides on an industrial scale.
With the larger non-Chinese players like Molycorp and Lynas either producing (or
near to producing) significant light rare earth oxides for their clients, the
focus of production shortfalls has moved from light to heavy REOs and from
mining to processing.
"The complexity of the task to produce pure heavy rare earth oxides to highly
varying customer specifications will separate the men from the boys," says
Alastair S. Neill, BLAK’s new CEO and internationally acclaimed expert in HREE
processing. "To produce a marketable product you not only need the right
sourcing material, permissions and money but also the know-how to handle the
process economically. Mistakes can easily cost millions," added Neill.
Black Sea Metals Inc. is currently formalizing the details of the planned joint
venture in a memorandum of understanding. And while the Company does not
currently have the funds to complete the project it is actively seeking to raise
the necessary funds. The company aims for a start of production in late 2015.
This news release contains "forward-looking statements" as that term is defined
in Section 27A of the Securities Act and Section 21E of the Securities Exchange
Act of 1934, as amended. Statements in this press release which are not purely
historical are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future. Such
forward-looking statements include, among other things, the cost of the project.
Actual results could differ from
those projected in any forward-looking statements due to numerous factors. Such
factors include, among others, the inherent uncertainties associated with new
business opportunities and development stage companies, the possibility that the
Company will not be able to raise the required funds to finance the project and
the possibility the project will not be completed.
These forward-looking statements are
made as of the date of this news release, and we assume no obligation to update
the forward-looking statements, or to update the reasons why actual results
could differ from those projected in the forward-looking statements. Although we
believe that any beliefs, plans, expectations and intentions contained in this
press release are reasonable, there can be no assurance that any such beliefs,
plans, expectations or intentions will prove to be accurate.
Investors should consult all of the
information set forth herein and should also refer to the risk factors
disclosure outlined in our annual report on Form 10-K for the most recent fiscal
year, our quarterly reports on Form 10-Q and other periodic reports filed from
time-to-time with the Securities and Exchange Commission. Except as required by
law, the Company assumes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or otherwise.
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