Canada Rare EarthCorp. said May 9 that it has struck a deal to acquire a 60% stake inan unnamed company based in Laos that owns a full capability rare earth refinery.

The transaction's terms include receiving an operating permitwithin six months following the agreement, and payment of the consideration pricewithin 12 months following signing.

Upon closing, Canada Rare Earth will grant a warrant to the ownerof the unnamed company to purchase up to 40 million company shares at 25 Canadiancents apiece, exercisable within 30 days.

The refinery is designed to process monazite rare earth concentrateand separate the concentrate into the entire spectrum of commercially traded rareearths, including light and heavy elements.

The future development plans of the Laos-based company entailsextending capabilities to include rare earth metal making.