Agreement to Acquire Further Interest in Bacanora

RNS Number : 2537K

Rare Earth Minerals PLC

20 September 2016

 

Rare Earth Minerals Plc

("Rare Earth Minerals", "REM" or "the Company")

Agreement to Acquire a Further Interest in Bacanora Minerals Ltd. and Corporate Update

Rare Earth Mineral Plc (AIM: REM; OTC: REMMY) has agreed to acquire a further 4.5 million existing ordinary shares in Bacanora Minerals Ltd for a consideration of £4.5 million [via an on market transaction]. Completion is due by the end of the month.

Once this acquisition complete REM will own a direct interest of 19.8% of Bacanora. REM holds joint joint venture interests of 30% in each of Mexalit S.A. de CV ("Mexalit") and Megalit S.A. de CV ("Megalit") as fully described below.

- La Ventana, La Ventana 1, and Megalit concessions, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 19.8% of Bacanora, will on completion have an indirect interest in these concessions of 19.8%.

- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). REM has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.9% in Bacanora, has a total economic interest in Mexalit of 43.9%.

- The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V ("Megalit"). REM has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.9% in Bacanora, has a total economic interest in Megalit of 43.9%.

On the 9 August 2016 REM announced that it had conditionally raised US$15 million through a loan note convertible into ordinary shares in the Company ("Convertible Loan"). The conditions precedent have been fulfilled. The Company will announce the completion of the Loan note agreement in due course once all funds are received. To  date the Company  has issued  US$6.5 million of the loan note.

- Ends -

For further information, please contact: 

Rare Earth Minerals plc

Andrew Suckling                                                                                                                           [phone]

Kiran Morzaria                                                                                                                               [phone]

WH Ireland Limited (NOMAD & Broker)                                                                             [phone]

James Joyce

James Bavister

Square1 Consulting                                                                                                                     [phone]

David Bick

Brain Alexander

 

END

 

 

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