Bacanora - conditional approval of offering

RNS Number : 7250K

Rare Earth Minerals PLC

27 June 2014

 



27 June 2014

Rare Earth Minerals Plc.

("Rare Earth Minerals" or "REM")

Bacanora Receives TSX-V Conditional Approval of Equity Offering

Rare Earth Minerals Plc (LSE AIM: REM) notes that  REM's Joint Venture Partner Bacanora Minerals Ltd ("Bacanora"), in which REM holds an 11.27% stake, has today made the following announcement:

Bacanora Announces TSX-V Conditional Approval of Equity Offering

BACANORA MINERALS LTD. (TSX VENTURE:BCN) ("Bacanora" or the "Company") is pleased to announce that the TSX Venture Exchange (the "TSX-V") has granted conditional approval in respect of its previously announced brokered financing that is expected to be completed in conjunction with its application for the admission of its common shares to trading on the AIM Market of the London Stock Exchange ("AIM"). In accordance with TSX-V rules, this approval authorizes Bacanora to collect subscriptions from placees and to close its financing in one or more tranches. Final TSX-V acceptance is subject to delivery (following closing and in any event prior to August 24, 2014) of final TSX-V forms and confirmation that the financing has been conducted in accordance with TSX-V rules. Bacanora intends to offer up to £4,750,000 of common shares at a price of £0.33 per share under this financing. Using a foreign exchange rate of £1.00 = C$1.834, the offering price per security will be approximately C$0.605 and the aggregate gross proceeds of securities offered is expected to be up to approximately C$8,708,334. The proceeds of the offering will be used to cover the expenses associated with the AIM listing and to fund the preparation of a pre-feasibility study on the Company's Magdalena Borate Project, for the continuation of the Company's work program to establish the economic potential of the Sonora Lithium Project and for general working capital purposes.

David Lenigas, The Company's Chairman, commented;

"Bacanora have now obtained approval from their Canadian regulatory authority to complete their financing at 33 pence per share to raise up to £4,750,000 provided that they achieve their proposed listing on AIM by 24 August 2014. REM sees Bacanora's proposed listing on AIM as a significant step forward for the overall Sonora Lithium Project in Mexico, as both Bacanora and REM will have the necessary funding in place to progress the pace of development of Sonora."

- 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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