Rare Earth Minerals Awarded Exploration Licences in Greenland; Stocks Rally on News

PUBLISHED: 25 Jul 2012 @ 22:15 | Comments (0) | More info about Kenneth G. Mondero

Heavy trading on the stocks of Rare Earth Minerals plc (LSE:REM) was seen early today following the company’s announcement it has been awarded three exploration licences in Greenland.

In a statement, REM said the three licences, acquired through the “significant effort from the board”, cover an area of about 832 square kilometres, two of which borders the “world class” rare earth elements deposits being operated by Australia-quoted Greenland Minerals and Energy Limited (ASX:GGG).

The latest asset is the fourth for the company after it left the music business and turned itself into mining, following a change in investing policy in November 2010.

“The Company has been working for over a year to secure these key Exploration Licences in Greenland, which surround one of world’s largest resources of REEs outside of China,” David Lenigas, Chairman of REM stated.

China exports over 95% of the global supply of rare earth minerals, being used in cellphones, televisions, and computers, as well as in hybrid cars.

The country is now in the middle of a WTO probe over its recent decision to lower its export quota and increased tariff on the sale of these 17 elements.

Still in Exploration Stage

The AIM-quoted rare earth elements explorer first acquired interest in Greenland when it purchased 0.31% interest in Greenland Minerals and Energy Limited back in December 2011.

Two other assets are located in Canada and Australia, where the company holds 51% and 30% interest, respectively.

“REM is actively pursuing further exploration licences in South Greenland, and we will keep the market informed of progress as events materialise,” Chairman Lenigas closed.

The company is yet to generate revenue from the acquired assets, with the first 15 months ending 31^st December 2011 resulted in a loss of £1.4 million, following the shift in investment.

At 1:15 PM GMT, REM shares inched 3.7% to 0.14 pence a share, reaching as high as 0.175 pence in early morning trading, with a turnover of over 21 million shares.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @kennethgmondero

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.