Rare Earth Minerals PLC REM Maintains Stake in Bacanora Placing (7870F)
16 November 2015 - 6:38PM
UK Regulatory
TIDMREM
RNS Number : 7870F
Rare Earth Minerals PLC
16 November 2015
16 November 2015
Rare Earth Minerals Plc.
("Rare Earth Minerals", "REM" or "the Company")
REM maintains 17% stake in Bacanora Minerals GBP8.8 Million
Placing to Advance Sonora Lithium
Project.
Rare Earth Minerals (LSE AIM: REM) is pleased to announce that
it has maintained it's 17.21% interest in its Sonora Lithium
Project partner Bacanora Minerals Limited ("Bacanora"), by
subscribing for 1,973,407 new common shares in Bacanora's GBP8.8
million placing announced today at 77 pence per share (the
"Placing"). REM has subscribed these new shares in Bacanora for the
consideration of approximately GBP1.52 million.
The full Bacanora news release relating to the Placing and
Sonora Lithium Project in Mexico (the "Sonora Project") update is
available at at:
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12582491.html
REM's participation in the Placing takes its total shareholding
in Bacanora to 16,632,915 shares, representing 17.21% of the
enlarged issued share capital and making REM the largest
shareholder of Bacanora. This interest, when aggregated with REM's
30% direct interest in Megalit S.A de CV (the company holding the
Beunavista, Megalit and San Gabriel concessions) and the 30% direct
interest in Mexelit S.A de CV (the company holding El Sauz, El Sauz
1, El Sauz 2, Fleur and Fleur 1 concessions), results in a total
economic interest in each of these companies of 42.05%.
The Placing by Bacanora will be used to advance the Sonora
Project, with the ultimate goal of becoming a large scale supplier
to the growing lithium market. The Sonora Project is one of the
largest lithium resources in the world containing combined
estimated Indicated and Inferred Mineral Resources of 7.42 million
tonnes of LCE.
Specifically, the funds will enable Bacanora to:
-- Facilitate the upgrade and continuous running of the
Company's operational pilot plant in Hermosillo to produce bulk
quantities of lithium products to supply to long term off-take
parties with whom the Company remains in ongoing discussions.
-- To enable the Sonora partners to fully fund the completion of
the Bankable Feasibility Study (assuming satisfactory completion of
the Pre-Feasibility Study), which is currently scheduled to
commence in the first half of 2016.
David Lenigas, REM's Executive Chairman, commented;
"This placing by Bacanora significantly increases their cash
reserves as the Sonora Lithium partners enter in to an
exceptionally busy period, with the work programme designed to
provide continuous operation of the Hermosillo Lithium processing
plant and work with off-take candidates as we run up to the
publishing of the Preliminary Feasibility Study."
Qualified Person;
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Glossary;
The Sonora Lithium Project is comprised of the following lithium
properties: La Ventana lithium concession, which is 100 percent
owned by Bacanora; El Sauz and Fleur concessions, which are held by
Mexilit S.A. de C.V. ("Mexilit"); and the Megalit concession, which
is held by Megalit S.A de C.V ("Megalit"). Mexilit and Megalit are
owned 70 percent by Bacanora and 30 percent by REM.
LCE = lithium carbonate (Li2CO3) equivalent; determined by
multiplying Li value in percent by 5.324 to get an equivalent
Li2CO3 value in per cent. Use of LCE is to provide data comparable
with industry reports and assumes complete conversion of lithium in
clays with no recovery or process losses.
Ends
For further information please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
David Lenigas
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
Mark Leonard
Square1 Consulting
David Bick +44 (0) 207 929 5599
Mark Longson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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