Rare Earth Minerals PLC Fully Closes YAGM Equity Swap
May 23, 2014 (Source: Rare Earth Minerals PLC) — Rare Earth Minerals (AIM: REM) is pleased to announce that it has completed the full Equity Swap Agreement with YA Global Master SPV, Ltd. (“YAGM”), which has now provided a total of £3,017,495 in cash funding from the 17 June 2013 until yesterday without issuing any further equity in the Company.
David Lenigas, the Company’s Chairman commented:
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“This YAGM Equity Swap has proved very successful for REM, having provided more than tenfold the original £300,000 funding envisaged and enabled REM to farm-in to the exciting Sonora Lithium Project in Mexico and pay for an extensive exploration and assessment programme, which continues today.”
YAGM Equity Swap:
On the 17 June 2013, REM announced that it had entered into a £300,000 Placing Agreement and separately a £150,000 Equity Swap Agreement with YAGM. Under the Equity Swap Agreement, REM was to receive an additional £12,500 per month for a 12 month period from September 2013, or more per month dependent on the future price performance of the Company’s ordinary shares (“Shares”). Under the 17 June Agreement, YAGM could elect to accelerate the payments due to REM under certain circumstances.
The recent share price performance of REM has led to accelerated payments under the Equity Swap Agreement, resulting in the complete closing of the Equity Swap. REM’s total cash payments resulting from the Equity Swap now total £3,017,495.
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