Bacanora Minerals Update

RNS Number : 3004S

Rare Earth Minerals PLC

20 December 2016

 

Rare Earth Minerals Plc

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

Update on Off-take Negotiations and Project Development

Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) is pleased to report that Bacanora Minerals Ltd ("Bacanora"), have announced the advancement of its long-term marketing and off-take strategy. In addition, Bacanora has provided an update on the Definitive Feasibility Study ("DFS") on the Sonora Lithium Project ("Project"). The full Bacanora announcement can be found at: http://web.tmxmoney.com/article.php?newsid=6162055031003214&qm_symbol=BCN

REM holds an interest in the Project though its 19.12% holding in Bacanora and the 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. The Project update, Definitive Feasibility Study work do not cover the Megalit joint venture

Highlights

·      Bacanora is in advanced discussions with a significant Asian offtake partner for the supply of battery grade lithium carbonate (Li₂CO₃). 

·      Battery Grade Li₂CO₃ has been produced for the last six months from the pilot plant in Hermosillo, Mexico. This production has supported the development of Bacanora's long-term marketing and off-take strategy

·      DFS aimed at establishing a production plan for a 35,000 ("tpa") lithium carbonate operation at the Project (production is contemplated to ramp up following an initial two years producing 17,500 tpa).

·      Bacanora planning to commence production of Li₂CO₃ in 2019

·      DFS due for completion in the summer of 2017

Qualified Person

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance).

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For further information, please contact: 

Rare Earth Minerals plc

Andrew Suckling                                                                                                                       [phone]

Kiran Morzaria                                                                                                                 

WH Ireland Limited (NOMAD & Broker)                                                                         [phone]

James Joyce

James Bavister

Square1 Consulting                                                                                                                  [phone]

David Bick

Brain Alexander

The Sonora Lithium Project and Details of REM's ownership

REM owns a direct interest of 19.12% of Bacanora. The Sonora Lithium Project is comprised of the following lithium properties:

- 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 19.12% of Bacanora, has an indirect interest in these concessions of 19.12%.

- 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 19.12% in Bacanora, has a total economic interest in Mexalit of 43.38%.

- 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 19.12% in Bacanora, has a total economic interest in Megalit of 43.38%.

About Rare Earth Minerals

Rare Earth Minerals invests across the globe, principally in lithium mining projects. Its primary strategy is to take significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Rare Earth Minerals board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. REM's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Rare Earth Minerals are major shareholders of the Sonora Lithium Project in northern Mexico and the Cinovec Lithium and Tin Project in the Czech Republic. Rare Earth Minerals portfolio also includes significant lithium-based investments the USA, Australia and Namibia. The Mexican and Czech deposits have published Indicated and Inferred Mineral Resources of 11.3 million tonnes of Lithium Carbonate Equivalent.

 

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