Mr. Mark Saxon reports
TASMAN EXPANDS RARE EARTH ELEMENT PROJECT PORTFOLIO IN FINLAND
Tasman Metals Ltd. has
entered into an agreement to acquire a 100-per-cent interest in three new REE (rare
earth element) exploration properties in central Finland. As
further described below, the Korsnas South, Siilinjarvi and Laivajoki projects are being acquired from an arm's-length private Finnish
company, Magnus Minerals Oy, for consideration including 60,000 common
shares of the company.
The Korsnas South project is located 350 kilometres north of Helsinki in west-central Finland, and comprises six claim applications securing approximately
1,300 hectares. These claims cover the southeastern prospective trend of the
historic Korsnas REE-lead mine that is currently under claim
application by Tasman (as reported on Feb. 3, 2010). The historic
mine site has excellent infrastructure, lying only one kilometre from the Baltic
coast, with an excellent all-weather road network and a skilled and well-serviced local community. Between 1959 and 1972, the Finnish mining
company Outokumpu Oy produced a total of 870,000 tonnes of ore
from Korsnas at a grade of 3.6 per cent Pb and 0.83 per cent REEs. REE-Pb
mineralization is associated with a carbonatite intrusion and other
rift-associated rock types, where REE-bearing minerals include apatite,
monazite and allanite. Within the claim areas gained under this
acquisition, clusters of several hundred REE-rich boulders and two
REE-mineralized outcrops are known, with historic grades of up to 13 per cent
total rare earth oxides (TREO). Elevated REE grades in boulders have
been recently confirmed by Tasman using hand-held Niton XRF devices,
which indicate the project to be strongly dominated by light REEs.
The Siilinjarvi project consists of two claim applications totalling 450 hectares covering
outcrops of alkaline intrusive and carbonatite, rock units that are
elsewhere known to host REE mineralization. The project lies adjacent
to the operating apatite/phosphate mine of Siilinjarvi (owned by Yara
International ASA) 30 kilometres north of the city of Kuopio. Geological Survey
of Finland records indicate that during historic exploration for
apatite ore in this area, alkaline rock units were discovered to be
elevated in REEs, but to Tasman's knowledge, no focused exploration for
these elements has been completed.
The Laivajoki project covers a 300-metre-by-four-kilometre carbonatite intrusion that lies on a
major structural boundary between mafic volcanics and granite,
approximately 100 kilometres southeast of the city of Rovaniemi. The area is
secured by a single claim application 390 hectares in size. In
mineralogical studies of high-REE grab samples from the carbonatite,
the Geological Survey of Finland reported the occurrence of REE-bearing
bastnasite, allanite, monazite and zircon.
In addition to this transaction, Magnus Minerals has been engaged to
manage exploration on Tasman's entire Finnish exploration portfolio. A
summer work program of surface sampling and mapping is now under way.
Magnus Minerals brings extensive project generation and geological
consulting experience, and will provide excellent support to Tasman's
"Tasman is pleased to add these new rare earth element projects to our
extensive Finnish portfolio," said Mark Saxon, Tasman's president and chief executive officer. "While the projects are of an early stage compared to our Swedish
assets, they have been selected due to their potential for elevated
grades of neodymium, one of the critical REEs that is short supply and
high demand within the green-technology, high-technology and automotive
industries. All projects are known to have rare-earth-bearing
minerals, and are supported by extensive existing infrastructure. We
welcome the continued involvement of the Magnus Minerals team, who will
assist in the follow up of all of Tasman's Finnish projects."
The purchase of the Korsnas South, Siilinjarvi and Laivajoki projects is
subject to New York Stock Exchange MKT and TSX Venture Exchange approval for the issuance
of the shares. Issuance of half the shares (30,000 shares) is also
subject to granting of the claims associated with the Korsnas South
project by the Finnish Mining Inspectorate. The shares in Tasman will
be subject to a hold period of four months from the date of issue.
Magnus Minerals retains a 2-per-cent net smelter return royalty (NSR) on the Finnish projects, and shall
receive a 2-per-cent NSR on Tasman's other Finnish exploration claims. The
closing of the acquisition is expected to occur five days after the
later of: (i) receipt of approval from both the TSX Venture Exchange and
the NYSE MKT to the issuance and listing of the shares to be issued to
Magnus Minerals; and (ii) receipt of approval from the Finnish Mining
Authority to transfer the Korsnas South, Siilinjarvi and Laivajoki
mineral claim applications from Magnus Minerals to the company.
In addition to this acquisition, note that the National Instrument 43-101 report for the
preliminary economic assessment of Tasman's Norra Karr REE-zirconium project
in Sweden is now available on SEDAR, EDGAR and the company's website.
The qualified person for the company's exploration projects, Mark Saxon,
president and CEO of Tasman, a member of the
Australasian Institute of Mining and Metallurgy and of the Australian
Institute of Geoscientists, has reviewed and verified the contents of
The company wishes to advise that Mr. Saxon shall be presenting at
the Marcum MicroCap Conference on June 20 at the Roosevelt Hotel, New
York. The event is hosted by Marcum LLP, one of the top 10
auditors of U.S. public companies, and co-presented by CCG Investor
Relations, a global investor relations consulting firm. Further
information can be found at Marcum's website.
We seek Safe Harbor.