REM increases holding in Bacanora Minerals to 5%

RNS Number : 4665B

Rare Earth Minerals PLC

04 March 2014

 



4 March 2014

Rare Earth Minerals Plc.

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

REM increases holding in Bacanora Minerals to 5%

Rare Earth Minerals (AIM: REM) announces that it has increased its shareholding in Bacanora Minerals Limited ("Bacanora") to 5%, from the previously reported 3.17%, through further on-market purchases totaling £317,000. This interest, when aggregated with REM's 30% direct interest in the Fleur- El Sauz Joint Venture, results in a total economic interest in the Fleur- El Sauz Lithium Joint Venture in northern Mexico with Bacanora of approximately 33.5%.

David Lenigas, the Company's Chairman, commented:

"Tesla Motor's news in recent days, of their plans to build a "Gigafactory" in the United States to produce significant quantities of lithium ion batteries and its potential effect on increasing global demand for lithium, has  accelerated REM's ambition of increasing the Company's overall exposure to the Sonora Lithium Project in northern Mexico."

"We currently own 30% of the expanding Fleur- El Sauz Lithium Project and we are now seeking to increase our ownership of our joint venture partner, Bacanora. The Sonora Lithium Project, which includes Bacanora's 100% owned La Ventana deposit and our joint venture on the  Fleur- El Sauz concessions already has drill defined NI 43-101 compliant inferred resources totaling over 2.3 million tonnes of Lithium Carbonate. At current representative prices of between $5,000 and US$6,000 per tonne for battery grade Lithium Carbonate, the Sonora  project is a very significant lithium resource in terms of the potential value of lithium in the ground."

"The Company expects this gross resource to improve significantly once the latest drilling results have been processed from the Stage 2 drilling programme."

- Ends -

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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