RARE EARTH EXPLORATION: Quest raises $46.5M for Strange Lake work

QUEBEC - Toronto's Quest Rare Minerals is raising $46.5 million for a prefeasibility study of its Strange Lake B zone on the border with Labrador. A portion of the funds will be used to exploration on the company's Misery Lake project south of Strange Lake.

The company has a inferred resource estimate for the B zone of 114.8 million tonnes averaging 0.999% total rare earth oxides at a 0.85% TREO cutoff. The mine model calls for a 4,000-t/d open pit mine requiring capital expenditures of $563.4 million.

Quest plans to issue 8.2 million units at a price of $4.25 each for gross proceeds of $35 million and 2.3 million flow-through shares at a price of $5.00 each for gross proceeds of $11.5 million. The company will grant an over-allotment to the agents that include Dundee Securities, CIBC World Markets and Stonecap Securities.

Maps of Quest's Strange Lake and Misery Lake properties are posted at www.QuestRareMinerals.com.