EDITOR: | September 9th, 2013

REM Closes Part of Equity Swap Position for £2.16 million cash

| September 09, 2013 | No Comments
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September 09, 2013 (Source: Rare Earth Minerals PLC) — Rare Earth Minerals (AIM: REM) is pleased to announce that it has completed a 58% partial close of the existing Equity Swap Agreement with YA Global Master SPV, Ltd. (“YAGM”), and is to receive a cash payment of £2,157,684 without issuing any further equity in the Company. YAGM has agreed to lock in all their remaining shares in REM until at least the 1 November 2013.

David Lenigas, the Company’s Chairman commented: 

“This injection of funds, without any dilution to the share capital of the Company at this point in time, is an excellent result as we head in to an already fully funded Stage 2 drilling programme at the Fleur-El Sauz Lithium Project in northern Mexico.”

“The funds will go towards further developments in Mexico and the Company’s Greenland exploration acreage.”

YAGM Equity Swap 

On the 17 June 2013, REM announced that the Company 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 an accelerated payment under the Equity Swap Agreement, resulting in 385,255,555 Shares or 58% of the Equity Swap having now been closed out. REM is now to receive a cash payment of £2,157,684 from YAGM within 7 days.

The remainder, 42% of the Equity Swap is still in place and the Company expects to receive additional funding from YAGM from December 2013 through to August 2014, again without the need to issue YAGM any further shares in the Company. The future amounts to be received by REM from the remaining Equity Swap will depend on the future price performance of the Company’s ordinary shares post 1 November 2013.

YAGM currently holds 281,411,111 shares in REM, representing 7.8% of the Company’s issued share capital and have agreed not to sell any of these shares until the 1 November 2013.


Raj Shah

Editor:

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>


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