Founding of "Seltenerden Storkwitz AG" for the development of the only known rare earth deposit in Central Europe
from 15. DECEMBER 2011
Round of financing for EUR 2,2 million completed / IPO planned for 2012
Dr. Thomas Gutschlag of Deutsche Rohstoff AG
Heidelberg. Deutsche Rohstoff AG (Heidelberg) has founded a new company, "Seltenerden Storkwitz AG", in order to promote the development of the Storkwitz deposit in the Delitzsch license area. It is the only known occurrence for rare earth elements (SEE) in Central Europe. SEE are mainly used in high and environmental technology. The historical resource according to GDR classification amounts to around 38.000 tons of rare earth and 8.000 tons of niobium. The first round of financing provided 2,2 million EUR and was carried out exclusively with investors from Germany. The initial goal is to bring the historical resource to an internationally recognized standard and then significantly increase it. Deutsche Rohstoff AG (DRAG) holds with 63% the majority of Chemnitz based rare earth Storkwitz AG. For the year 2012 an IPO is planned in Germany. At present, the process of transferring the license from Deutsche Rohstoff AG to Seltenerden Storkwitz AG is still in progress.
Dr. Titus Gebel, CEO and CEO of Deutsche Rohstoff AG: "The only rare earth deposit in Central Europe can now be rapidly developed. Since GDR times, geologists have agreed that this deposit can grow significantly to the depths. The rare earth Storkwitz AG has access to the best experts and could win with Bernhard Giessel an experienced industrial manager as a board.
Bernhard Giessel, CEO of the new company, said: "Not least supported by the increasing offensive raw materials policy of the Federal Government, the actions of German companies, such as the planned" Alliance for the securing of raw materials ", are gaining more and more momentum. We assume that this resource is also of interest to German industry. "
Random find at GDR times
The Storkwitz deposit has been discovered in exploration activities on uranium in the 1970 years. This completely unexpected find was considered a sensation at that time, because in Germany never before comparable comparable rare earth occurrences had been discovered. For 29 drilling in the area, the orebody has been defined by five holes so far. It contains light SEE such as cerium, lanthanum, praseodymium and neodymium but also heavy rare earths such as europium and yttrium.
In spring 2012 will commence a drill program to convert the deposit into an internationally recognized resource under the Australian JORC standard. Thereafter, then the extent of the deposit in particular to the depth to be further investigated. The earlier investigations assumed that there was a considerable potential for expansion. The discoverer, the German-Soviet uranium company SDAG Bismuth, estimated the potential amount of SEE already 1975 up to 136.000 tons.
Rare earth one of the critical raw materials
The 17 rare earth elements are mainly used in technologically advanced products. In particular, the high-tech industry, but also manufacturers of solar and wind power plants rely on several of these elements. Approximately 97% of world rare earth production comes from China. The People's Republic controls the export of metals and has steadily reduced export volumes in recent years. Accordingly, the prices for SEE are now a multiple of the past years.
Both the Federal Government and the European Commission classify the SEE as a strategically important metal whose security of supply is at risk. Even within the German economy, the supply of rare earths is considered critical.
Heidelberg, 10. January 2012
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