Update on Macarthur Minerals

RNS Number : 4859H

Rare Earth Minerals PLC

17 August 2016

 

Rare Earth Minerals Plc

("Rare Earth Minerals" or "REM")

Update on Macarthur Minerals

Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) is pleased to report that Macarthur Minerals ("Macarthur") in which REM owns a 15.5% shareholding, has announced that it has acquired a lithium Project in Nevada, USA. The full Macarthur announcement can be found at:
http://web.tmxmoney.com/article.phpnewsid=4701858674995706&qm_symbol=MMS .

Macarthur Minerals Limited (TSX VENTURE: MMS) (the "Company" or "Macarthur Minerals") is pleased to announce that it has entered the United States lithium supply sector through an agreement to acquire the Stonewall Project in Nevada, which is prospective for lithium ("Stonewall Project"). The Stonewall Project covers an area of approximately 5,700 acres (23 km²) and the majority of a Salt Lake Playa in Nevada's Lida Valley Basin, the adjacent basin to the Clayton Valley Basin, which hosts the United States' only producing lithium mine. The Stonewall Project is considered essentially "drill ready" and a United States mineral exploration company is being engaged to undertake a shallow drilling program for due diligence purposes.

David Taplin, President, CEO and Director of Macarthur Minerals commented:

"Acquisition of the Stonewall Project located in Nevada is an exciting opportunity for Macarthur Minerals as its entry into the United States lithium supply market. The Stonewall Project is strategically located 306 kilometres from Tesla's Gigafactory in Nevada and is 48 kilometres from Albemarle's Silver Peak Lithium Mine, the only operating lithium mine in North America. The acquisition adds to Macarthur Minerals' extensive and highly prospective Western Australian 'hard rock' lithium exploration asset portfolio to give the Company a truly global lithium strategy."

Strategic Location of the Stonewall Project

As indicated in Figure 1, the Stonewall Project is strategically located in the Nevada lithium supply hub, 306 kilometres (191 miles) southeast of Tesla's new Gigafactory, which has a planned production capacity of 35 gigawatt-hours per year by 2020(1).

The Stonewall Project is located within 53 kilometres (33 miles) of New York Stock Exchange listed Albemarle Corp's Silver Peak Lithium Mine located in Clayton Valley, Nevada. Silver Peak is North America's only producing lithium mine and has been operating since 1967.

The Stonewall Project is located within 48 kilometres (30 miles) of TSX-V listed Pure Energy Minerals Limited's Clayton Valley South Project, which has an NI 43-101 Inferred Resource of 816,000 metric tonnes of LCE(2). Pure Energy Minerals Limited's Clayton Valley South Project is one of only two lithium projects to have publicly entered into a conditional lithium agreement with Tesla Motors Inc.

Geological Setting of Stonewall Project

Figure 2 shows the location of the Stonewall Project over the majority of a Salt Lake Playa consisting of 38 Placer Mine Claims, located in the Lida Valley, Nevada.

The Stonewall Project is located in an intermontane basin and surrounded by strong potential tertiary volcanic lithium source rocks. The lithium source rock includes flows and tuffs that likely extend below the alluvial cover.

The Stonewall Project is located in the mining friendly Nye and Esmeralda Counties of Nevada and is serviced by excellent infrastructure with access to power, water, labour and is bisected by the Veterans Memorial Highway Number 95. The regional climate also favours natural and inexpensive evaporation for brine concentration and allows year-round work.

Due Diligence and Auger Drilling Program

A United States mineral exploration company is being engaged to perform the initial technical due diligence evaluation work on lithium for the Stonewall Project. The mineral exploration company will shortly conduct an initial shallow drilling program on the Stonewall Project for the purposes of collecting soil and brine samples for lithium. Nevada legal counsel has been engaged to provide a legal title report for the Stonewall Project Placer Mine Claims.

Memorandum of Understanding

Macarthur Minerals has entered into a Memorandum of Understanding ("MOU") with Voltaic Minerals Corp. (TSX VENTURE: VLT) (FRANKFURT: 2P61) ("Voltaic") to enter into a Purchase Agreement for the Stonewall Project on the following key terms:

·      Macarthur Minerals will issue 2 million ordinary shares to Voltaic at 10 cents per share.

·      Macarthur Minerals will pay approximately US$48,000 by September 1, 2016 (refundable if the purchase is not completed).

·      completion of the Purchase Agreement scheduled for September 30, 2016, is subject to Macarthur Minerals carrying out satisfactory technical, legal and tax due diligence.

·      following completion and transfer of unencumbered title to the Stonewall Project, payment to Voltaic of US$50,000 within 6 months.

ABOUT MACARTHUR MINERALS LIMITED (TSX VENTURE: MMS)

Macarthur Minerals Limited is an exploration and development company that is focused on identifying and developing high grade lithium and counter cyclical investments that complement Macarthur's capabilities. In addition, Macarthur retains its two iron ore projects in Western Australia; the Ularring hematite project (Indicated 54.46 million tonnes @ 47.2% Fe, Inferred 25.99 million tonnes @ 45.4% Fe -- Pre-Feasibility Study)(3) and the Moonshine magnetite project (1.3 billion tonnes @ 30.1% Fe -- Preliminary Economic Assessment)(4).

(1) https://www.tesla.com/sites/default/files/blog_attachments/gigafactory.pdf

(2) Inferred resource estimate for Lithium Clayton Valley South Project Clayton Valley, Esmeralda County, Nevada, USA, Technical Report for NI 43-101 Prepared on behalf of Pure Energy Minerals Ltd, July, 17, 2015. http://www.pureenergyminerals.com/wp-content/uploads/2015/07/Clayton-Valley-South-Inferred-Resource-43-101-July-17-2015-Final.pdf 

(3) Previously announced on August 16, 2012 NI 43-101 Technical Report filed October 1, 2012, titled "NI 43-101 Technical Report, Macarthur Minerals Limited, Pre-Feasibility Study, Ularring Hematite Project, Western Australia".

(4) NI43-101 Technical Report filed December 17, 2009, titled "NI43-101 Technical Report on Lake Giles Iron Ore Project: Western Australia" and was updated by Snowden Mining Industry Consultants (NI43-101 Technical Report filed March 25, 2011, titled "Macarthur Minerals Limited: Moonshine and Moonshine North Prospects, Lake Giles Iron Project, Western Australia, NI43-101 Technical Report -- Preliminary Assessment."

For further information, please contact:

Rare Earth Minerals plc                                                                     [phone]

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (Nomad & Broker)                                           [phone]

James Joyce

James Bavister

Square1 Consulting                                                                            [phone]

David Bick

Brian Alexander

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) from CASS Business School.

 

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