Rare Earth Minerals PLC: Completion of Placing and Stage 2 Option for Mexico Lithium Project
September 05, 2013 (Source: Rare Earth Minerals) — Rare Earth Minerals (AIM:REM) is pleased to announce that the placing announced on 23 August has closed and that the Company has today wired $1 million to Bacanora Minerals Ltd (“Bacanora”) which will be used for the Stage 2 exploration and drilling programme on the El Sauz and Fleur lithium concessions (the “Concessions”) in northern Mexico. As a consequence, REM’s equity in the Bacanora subsidiary, MEXILIT SA de CV (“MEXILIT”), which owns the Concessions, will increase to 30% on receipt of the funds by Bacanora.
Under the terms of the Agreement REM was to pay Bacanora US$500,000 to move to Stage 2 of the joint venture and spend US$1 million on further exploration and drilling on the Concessions over the next 6 months to earn an additional 20% of MEXILIT. The entire $1.5 million has now been sent to Bacanora and will REM earn a 20% direct interest in MEXILIT in addition to the 10% already earned for completing the Stage 1 commitments for a total of 30%. A further announcement will be made by REM when the Company formally receives its entire earned interest.
As previously announced, REM continues to have a first right of refusal, under the agreement with Bacanora, to negotiate terms to further increase its interest in the Project to 49.9%.
Further to its announcement on 23 August 2013, Rare Earth Minerals plc announces that it has completed the Placing for 150,000,000 new ordinary shares in the capital of the Company (“Shares”).
Application will be made to the London Stock Exchange for the New Ordinary Shares to be admitted to trading on AIM (“Admission”). The New Ordinary Shares will rank pari passu with the existing ordinary shares in the Company and Admission is expected to commence on 11 September 2013.
Following Admission, the Company’s enlarged issued share capital will comprise 3,761,952,383 ordinary shares. The Company does not hold any shares in treasury. This figure of 3,761,952,383 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA’s Disclosure and Transparency Rules.
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David Lenigas, the Company’s Chairman commented:
“The Company thought it prudent to pay the last $1 million earlier than planned to our Joint Venture partners in Mexico, in order to accelerate ownership of its 30% interest in MEXILIT.”
“This payment will allow out Joint Venture partner to plan and execute a much larger drilling programme in Mexico with the certainty of funding from REM.”
“An update on the upcoming drilling programme will be announced once finalized.”
Raj Shah has professional experience working for over a half a dozen years at financial firms such as Merrill Lynch and First Allied Securities Inc., ... <Read more about Raj Shah>