Exercise of Option in Mexico Lithium Project

RNS Number : 9092M

Rare Earth Minerals PLC

30 August 2013

 



30 August 2013

Rare Earth minerals plc

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

 Exercise of Option in Mexico Lithium Project

Rare Earth Minerals (AIM: REM) has today formally exercised its option under the joint venture agreement with Bacanora Minerals Ltd ("Bacanora") previously announced to move to Stage 2 and purchase a further 20% interest in the Fleur-El Sauz Lithium Project in northern Mexico (the "Project"), increasing its total interest to 30%.

On 27^th of August the Company announced that it had given notice to Bacanora that REM would exercise its Option to move to Stage 2 of the joint venture.

Under the formal agreement between the parties, REM has paid Bacanora US$500,000 to move to Stage 2 of the joint venture, and has committed to spend US$1 million on further exploration and drilling on the Fleur-El Sauz Lithium Project over the next 6 months.

As previously announced, REM has a first right of refusal, under the agreement with Bacanora, to negotiate terms with Bacanora to further increase its interest in the Project to 49.9%.

David Lenigas, the Company's Chairman commented:

"The Company announced that the first 10 diamond drill holes at the Fleur-El Sauz Lithium Project have already identified an initial estimated resource of 1,782,000 tonnes of Lithium Carbonate Equivalent ("LCE"), at a 1,000 ppm Lithium cut, over an initial 4 kilometres strike length."

"The new larger 6 month drilling programme is planned to test for further resources, as the Lithium bearing clays in the deposit identified to date remain open on strike to the south and to depth, down dip to the east."

"Further updates on the Joint Venture are expected shortly."

For further information please contact:     

Rare Earth Minerals Plc                                                              www.rareearthmineralsplc.com 

David Lenigas, Chairman                                                           

[phone]                                                                

 NOMAD - WH Ireland Limited

James Joyce/Nick Field

[phone]

PR - Pelham Bell Pottinger

Charlie Vivian/ Weston Macklem

[phone]

 

END

 

 

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