Appointment of SRK & Increased Bacanora Holding

RNS Number : 7716W

Rare Earth Minerals PLC

12 November 2014

 



12 November 2014

Rare Earth Minerals Plc.

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

Appointment of SRK Exploration Services Ltd. and increased strategic holding in Bacanora Minerals to 12%

Rare Earth Minerals (AIM: REM) is pleased to announce that it has appointed SRK Exploration Services Ltd., ("SRK"), to asses strategic options in the development of REM's 30% direct interest in the Fleur - El Sauz ("JV#1") and Megalit Joint Ventures ("JV#2"), and are currently reviewing the geological model for mineralisation that can potentially be accessed by open pit for JV#1, as reported in the Bacanora Minerals Limited ("Bacanora") NI 43-101 report published on 24 June 2014.

REM is also pleased to announce that it has increased its shareholding in its joint venture partner in the Sonora Lithium Project in Mexico, Bacanora, from 11.29% to 12%, through further market purchases totalling £313,500. 

This interest, when aggregated with REM's 30% direct interest in the JV#1 and the 30% direct interest JV#2, results in a total economic interest in each of these joint ventures of approximately 38.4%.

David Lenigas, The Company's Chairman, commented:

"The purchase of these shares makes REM the second largest shareholder in Bacanora. We believe that with the forecasted lithium compound shortfall by 2020, and the progress being made on the Sonora Lithium Project, there continues to be value in increasing our strategic shareholding in Bacanora."

"The review being carried out by SRK will help optimise open pit design to deliver the best value to the project and support a potential lithium operation at the Sonora Lithium Project capable of producing up to 50,000 tonnes a year of lithium compounds."

- Ends -

For further information please contact: 

Rare Earth Minerals plc                                                                   [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Joint Broker)                               [phone]

James Joyce

Mark Leonard

Hume Capital plc (Joint Broker)                                                     [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick                                                                                           [phone]

Mark Longson

 

END

 

 

MSCBIBDBUGBBGSB