Topic: How To Invest

Hi Pat: I don’t have any penny stocks but Quantum Rare Earth Developments is intriguing. Any thoughts?

Article Excerpt

Quantum Rare Earth Developments Corp., $0.14, symbol QRE on Toronto (Shares outstanding: 86.0 million; Market cap: $12.0 million; www.quantumrareearth.com), is developing what it believes is North America’s highest grade large-tonnage niobium project at its 100%-owned Elk Creek, Nebraska, site. Niobium is a rare metal that when used as an additive makes steel stronger, more heat resistant and easier to weld. Niobium is widely used in automobiles and oil and gas pipelines. Right now, China accounts for about 25% of worldwide niobium consumption. Quantum acquired the Elk Creek site, a former Molycorp project, in 2010. Molycorp drilled 110 holes in the 1970s and 1980s. Now, with rising niobium prices, Quantum aims to define a large, mineable deposit. The company has also identified what it believes is a high-grade rare earth deposit 2.5 kilometres away from the niobium deposit. In December 2011, Quantum raised $777,850 by issuing new shares for $0.15 each. That’s now down to less than $167,000. Quantum will likely need to undertake…