Pele Mountain Resources has raised $2.4 million for exploration and development activities at its Eco Ridge Mine Rare Earths and Uranium Project in Elliot Lake.
The company announced Dec. 21 it had completed a private placement offering of 15,012,500 flow-through units at a price of 16 cents for gross proceeds of $2,402,000.
The company's preliminary economic assessment (PEA) released on Sept. 7 revealed the potential for a 9,000-ton-per-day operation with production of 10.7 million pounds of total REO and 24.9 million pounds of uranium over 15 years.
Located 160 km west of Sudbury, the $219-million project has an indicated resource of 51,859,000 pounds of total REO and 15,182,000 pounds of uranium, and an inferred resource of 96,352,000 pounds of total REO and 31,444,000 pounds of uranium.
The company also recently announced that processing design improvements have resulted in higher recoveries of rare earth oxides, including neodymium, dysprosium and yttrium oxide.
The improvements, which include acid baking rather than the heap leach and bioleach methods proposed in the company's PEA, will ensure a “significantly greater emphasis on REO production than was envisioned previously.”
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