MONTOURSVILLE, Pa.--(BUSINESS WIRE)--Colorado Rare Earths, Inc. (OTCBB: CALY) today announced that it has signed an agreement with Union Financial & Investment Corp. (“UFIC”) , a Republic of Korea corporation, to begin negotiations with large rare earth “end-user” Korean corporations. The agreement further determines that UFIC may offer client access to potential joint venture parties and/or interested investors.
Since its founding, UFIC has established itself as a leading financial advisory services firm in Korea, providing a full range of investing, advisory and financial services to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. UFIC specializes in the arrangement of financing and investment in the Capital Markets, Structured Trade Finance, Securitization, Acquisition Finance, Project Finance, Restructuring and Business Consulting. UFIC is joined by International Structured Management, LLC in implementing the efforts. Commenting on the agreement Myung-Ho Lee said; "Given the current environment surrounding the rare earth deposits in the world, I believe that a CREC alliance with a Korean company or organization will be mutually beneficial and a necessity for the continued long term planning and growth of any Korean company. Union is excited about this opportunity and look forward to making a contribution in this endeavor."
In announcing the agreement with UFIC, Michael Parnell, Colorado Rare Earths, Inc., CEO, said: “The Company looks forward to this additional exposure; our stockholders expect us to continuously improve our international as well as our national exposure -- and South Korea is very interested in expanding its rare earths access.”
Recently, $7 billion was designated by South Korean companies for overseas resources development projects this year. In a report by the South Korean Ministry of Knowledge Economy, this represents a 222-percent increase over the $2.2 billion spent by South Korean companies last year. According to the report, the increase in funding is intended to help insulate South Korea from sudden international price hikes. The report was based on a survey of 25 South Korean companies involved in resources development operations. State-run corporations including Korea Resources Corp. and Korea Electric Power Corp. plan to spend around $2.58 billion to acquire rare earth metals and other foreign resources.
Myung-Ho Lee has been the CEO and President of Union Finance & Investment Corporation since 1995 and has guided UFIC to over $5.5 Billion of business in the areas of Project Finance & Structured Finance, Corporate Finance and M&A, Trade Financing, Advisory & Consulting and Forfaiting (The purchasing of an exporter's receivables). A partial list of UFIC’s many clients includes; Hyundai Engineering & Construction Co., Ltd., Hyundai Corporation, Hyundai Oil Refinery Co., Samsung Corporation, Daewoo Corporation, The Ministry of Finance & Economy, Ltd., Korea Exchange Bank and Kookmin Bank.
About Colorado Rare Earths, Inc.:
Colorado Rare Earths, Inc. is a mineral claims acquisition company. The Company currently focuses on rare-earth-elements and owns a 100% interest in a group of unpatented mineral claims, the Iron Hill Property, located in Gunnison County, Colorado, and a 100% interest in a group of unpatented mineral claims including the Wet Mountains Property, located in Freemont County, Colorado and Custer County, Colorado. After a planned capital raise, the Company will become a mining exploration and development company. The Company also operates a national agency specializing in co-op advertising through a subsidiary.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, general economic conditions and the ability of the Company to market and sell its products, and the effects of competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate, and therefore, there cannot be assurance that any forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in any forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.