Rare Earth Minerals PLC Strategic Stake Purchased in Auroch Minerals (7721Q)
December 02 2016 - 1:01AM
UK Regulatory
TIDMREM
RNS Number : 7721Q
Rare Earth Minerals PLC
02 December 2016
Rare Earth Minerals Plc
("Rare Earth Minerals" or "REM")
Strategic Stake Purchased in Lithium Explorer Auroch
Minerals
London and New York listed Rare Earth Minerals Plc (AIM/ISDX:
REM, OTC: REMMY), is pleased to announce that it has subscribed for
6.5 million new shares at AS$ 0.10 per share in Auroch Minerals
Limited ("Auroch"), a company listed on the Australian ASX.
Highlights:
-- Rare Earth Minerals has agreed to acquire 7.7% of in Auroch
through a AS$650,000 share subscription
-- Auroch focusing current activities over five prospecting
license, which have been applied for, in Namibia which are highly
prospective for lithium
-- Auroch has a strong financial position: A$6.4 million in a cash and A$2 million in receivables
-- Auroch's balance sheet will be used to support an aggressive
exploration programme targeting high-grade lithium deposits in
Namibia
Andrew Suckling, Executive Chairman of REM, commented:
"Rare Earth Minerals continues to deploy its expertise in
identifying value investments in highly prospective lithium plays.
We will leverage our mining, marketing, and lithium industry
knowledge and experience to provide continuing support to Auroch,
and to assist management and develop these prospects rapidly up the
development curve. We look forward to a close collaboration with
the management of Auroch as it develops its lithium interests."
Use of Funds
The placing funds, along with Auroch's existing cash (combined
$6.4 million) will be used in part to fund an aggressive
exploration and development programme, targeting high-grade lithium
in pegmatites, similar to those that have been successfully
commercialised in western Australia over the last three years.
Auroch is currently focusing its activities over five Exclusive
Prospective Licenses ("EPL") in the Karibib area of Namibia, which
have been applied for. The license applications focus on a region
that has strong geological evidence of a significant number of late
tectonic granites and associated Lithium Caesium Tantalum pegmatite
swarms. Ninety percent of Namibia's historic lithium production
comes from this terrain and geological mapping by the Namibian
government has identified over 100 pegmatite occurrences in the
area. Auroch believes this project represents an exciting early
stage lithium exploration opportunity, in one of Africa's most
stable and mining investment friendly countries.
Details of Auroch's Share Subscription
Rare Earth Minerals has agreed to subscribe for AU$ 650,000 at
AU$ 0.10 per share as part of a placement in Auroch for a total of
AU$ 750,000 at AU$ 0.10 per share together with half an option with
each share subscribed for. These options are exercisable up and
until the 28 October 2018 at an exercise price of AU$0.20. As part
of the subscription, Rare Earth Minerals will receive options over
a further 3.25 million shares at an exercise price of AS$0.20,
valid until 28 October 2018. It is anticipated the completion of
this financing will occur in early December 2016, at which point
Rare Earth Minerals have agreed to voluntarily escrowed their
shares for a six-month period.
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.
-Ends-
For further information, please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (Nomad & Broker) +44 (0) 207 220 1666
James Joyce
James Bavister
Square1 Consulting +44 (0) 207 929 5599
David Bick
Brian Alexander
About Rare Earth Minerals
Rare Earth Minerals invests across the globe, principally in
lithium mining projects. Its primary strategy is take significant
economic stakes in upstream exploration and development assets
within strategic metals. We identify assets that have strategic
cost advantages that are not replicable, with the aim of achieving
lower quartile production costs. The combination of this approach
and seeking value opportunities allows us to identify projects
capable of achieving high rates of return.
The Rare Earth Minerals board has a blend of mining, commodity
investing, fund management and deal structuring knowledge and
experience, that is supported by access to key marketing, political
and industry contacts. These resources are leveraged not only in
our investment decisions but also in continuing support of our
investments, whether it be increasing market awareness of an asset,
or advising on product mix or path to production. REM's goal is to
assist management to rapidly develop the project up the value curve
and deliver excellent returns on its investments.
Rare Earth Minerals are major shareholders of the Sonora Lithium
Project in northern Mexico and the Cinovec Lithium and Tin Project
in the Czech Republic. Rare Earth Minerals portfolio also includes
significant lithium-based investments the USA and Australia. The
Mexican and Czech deposits have published Indicated and Inferred
Mineral Resources of 11.3 million tonnes of Lithium Carbonate
Equivalent.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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