REM exercises option to go to 30% of Megalit

RNS Number : 0098I

Rare Earth Minerals PLC

27 May 2014

 



27 May 2014

Rare Earth Minerals Plc.

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

REM exercises option to go to 30% of Megalit Lithium JV in Mexico

Rare Earth Minerals (AIM: REM) is pleased to announce that REM has exercised its option with Bacanora Minerals Limited ("Bacanora") to increase its interest in the Mexican Megalit Lithium Joint Venture from 10% to 30% over a maximum period of one year.

The Megalit Joint Venture includes the San Gabriel, Buenavista concessions and the 94,814 hectare Megalit concession that surround the Sonora Lithium Project in northern Mexico.

Under the terms of the option agreement with Bacanora, announced on 13 March 2014, REM has paid Bacanora cash consideration of $500,000 and has committed to spend a further $1,000,000 on exploration and drilling on the Megalit Joint Venture over the next year. REM's interest in the Megalit Joint Venture will increase to 30% when the $1,000,000 has been provided to the joint venture over the next year or sooner.

REM has a right of first refusal (until December 2015) to negotiate terms to increase its interest in the Megalit JV from 30% to a maximum of 49.9%.

REM currently has a 10.18% shareholding in Bacanora, its joint venture partner in both the Megalit and Fleur-El Sauz Lithium Projects in Northern Mexico.

This interest, when aggregated with REM's 30% direct interest in the Fleur-El Sauz Lithium Joint Venture and the existing 10% direct interest in the Megalit Joint Venture, results in a total economic interest in Fleur-El Sauz of approximately 37.13% and a total economic interest in Megalit of approximately 19.16%.

David Lenigas, the Company's Chairman commented:

"REM sees significant exploration potential for Lithium in this Megalit Joint Venture  and we look forward to shortly reporting results from the current drilling programme being carried out on the Megalit concession."

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For further information please contact: 

Rare Earth Minerals plc                                                                   [phone]

David Lenigas

Kiran Morzaria

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

James Joyce

Nick Field

Hume Capital plc (Joint Broker)                                                      [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick                                                                                           [phone]

Mark Longson

 

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