REM increases stake in the Cinovec Lithium Project

RNS Number : 0561R

Rare Earth Minerals PLC

04 March 2016

 

Rare Earth Minerals Plc

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

REM increases stake in the Cinovec Lithium Project to 19.8%

Rare Earth Minerals Plc (AIM: REM; OTC REMMY) is pleased to announce that it has increased its strategic stake in one of the most significant lithium deposits in Europe, the Cinovec Lithium Deposit ("Cinovec") in the Czech Republic to 19.8%, through a direct holding in the share capital of European Metals Holdings Limited (ASX code: EMH) that owns 100 per cent of the exploration rights to Cinovec.

REM acquired its additional 7.9% holding in European Metals at a cost of approximately of £670,000 via a placement of new ordinary shares by European Metals. European Metals raised a total of AUD$ 1,755,000 (GB£ 912,600).

The funds are being used to advance the Cinovec Lithium project up the development curve, and in particular continue the drilling campaign to upgrade the current Inferred Mineral Resource into the Indicated category that will form the basis of a pre-feasibility study.

Highlights of the Cinovec Deposit (as previously released):

·     The Cinovec project is a large hard rock deposit with a total Inferred Mineral Resource of 5.5 million tonnes ("Mt") of lithium carbonate equivalent ("LCE") from 514.8 million tonnes Mt of ore at a grade of 0.43% Li₂O. 

·     Exploration target of a further 3.4Mt to 5.3Mt LCE from between 350 to 450 Mt of ore at a grade of 0.39% to 0.47% Li₂O.

·     Total Indicated and Inferred Mineral Resources of 79.7Mt grading 0.23% Sn for 183kt of contained tin.

·     Metallurgical test work has produced both battery grade lithium carbonate and high grade tin concentrate.

·    Scoping Study shows potential production costs of approximately of US$1,500 per tonne lithium carbonate excluding tin and tungsten credits.

Commenting on the acquisition, Andrew Suckling, Chairman of REM, said:

"We have now built significant equity positions in major lithium deposits in both central Europe and northern Mexico, both these project have the potential to be large low cost producers supplying the fast growing lithium battery market." 

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).

- Ends -

For further information please contact: 

Rare Earth Minerals plc

Andrew Suckling                                                                                                              [phone]

Kiran Morzaria                                                                                                                  [phone]

WH Ireland Limited (NOMAD & Broker)                                                               [phone]

James Joyce

Mark Leonard

Square1 Consulting                                                                                                        [phone]

David Bick

Brain Alexander

 

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