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RareX (ASX:REE) buys stake in Canada Rare Earths Company, flags OTCQB listing

ASX News, Materials
ASX:REE      MCAP $10.25M
19 February 2021 14:20 (AEST)

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RareX (REE) has acquired a 12.3 per cent stake in the Canada Rare Earths Company (CREC).

REE bought C$1 million (around A$1 million) worth of shares in the TSX-listed business at a price of 4 cents each.

The purchase comes after RareX bought the option to acquire 24 million CREC shares from Talaxis Group back in late December.

In a pleasing development for REE, since the agreement was signed shares in Canada Rare Earth Company have soared to 18 cents each.

The share price bump pushes RareX’s shareholding in CREC to approximately C$4.46 million (about A$4.52 million).

It also gives the company an unrealised gain of $3.47 million and increases RareX’s total cash and liquids position to $8.6 million.

Meanwhile, REE has also revealed it will pursue listing its shares on the OTCQB market in North America.

The company believes cross-listing will broaden its investor base in the U.S. and Canada during this favourable time for the rare earth industry.

REE shares are currently trading on the ASX for 11.5 cents each, down 4.17 per cent at 2:51 pm AEDT.

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