Rare Earths Global Limited Agreement with TRSICL (4795Q)
15 October 2013 - 5:00PM
UK Regulatory
TIDMREG
RNS Number : 4795Q
Rare Earths Global Limited
15 October 2013
15 October 2013
Rare Earths Global Limited
("REG" or the "Company")
Agreement with Tianjin Ruixiang Stone Investment Company Limited
("TRSICL")
Rare Earths Global Limited (AIM: REG), a leading mining services
group focused on the extraction, separation, refinement and trading
of rare earth elements, oxides and other related products, is
pleased to announce that it has agreed a transaction with TRSICL
with the intention to expedite securing the relevant rare earth
production/export quotas and licences in China. TRSICL are a
private Chinese investment Company with a wealth of experience in
the resources sector in China and have an excellent track record in
dealing with local Government and securing licences and quotas
across various resource types. TRSICL employs over 250 people
including 60 engineers with expertise in mining design, extraction,
management and license application. The key terms of this agreement
are as follows:
-- TRSICL will acquire 30% of the share capital of Long Era
Limited (a subsidiary of REG that owns the Company's separation
plant at Sanxie) in two equal tranches for a total cash payment of
RMB12 million. The first tranche of RMB 6 million is transferable
immediately and the second tranche of RMB 6 million shall be
payable before 31 March 2014.
-- In terms of the agreement, TRSICL has undertaken to secure:
-- a production quota of no fewer than 300 tonnes for our plant
at Sanxie for 2014;
-- an export quota of no fewer than 150 tonnes for our plant at
Sanxie for 2014;
-- approval from all the relevant government authorities to
expand production at the Sanxie plant to 3,000 tons per annum in
order to meet all requirements under the Chinese White paper in
2014.
-- If TRSICL does not meet any of its agreed obligations set out
above the Company can elect to re-purchase the 30% interest in Long
Era Limited at the original consideration.
-- TRSICL shall have the right to appoint 2 directors to the
Board of Long Era Limited out of a total of 6.
The Board believe that this Agreement provides the Company with
an outstanding opportunity to enable REG to obtain the relevant
quotas and licences in the short term. We will now begin work in
earnest with TRSICL at Sanxie and look forward to updating
shareholders on our progress as soon as possible.
- Ends -
For further information:
Rare Earths Global Limited
Simon Ong, Chief Executive Tel: +86 755 8633
Officer 6388
Brian Ho, Finance Director www.rareearthsglobal.com
Charles Stanley Securities
Nominated Adviser & Broker
Dugald J. Carlean / Carl Tel: +44 (0) 20
Holmes 7149 6000
www.csysecurities.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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