DJ Rare Earth Minerals PLC Strategic Stake Purchased in Auroch Minerals
RNS Number : 7721Q
Rare Earth Minerals PLC
02 December 2016
Rare Earth Minerals Plc
("Rare Earth Minerals" or "REM")
Strategic Stake Purchased in Lithium Explorer Auroch Minerals
London and New York listed Rare Earth Minerals Plc (AIM/ISDX: REM, OTC: REMMY), is pleased to announce that it has subscribed for 6.5 million new shares at AS$ 0.10 per share in Auroch Minerals Limited ("Auroch"), a company listed on the Australian ASX.
-- Rare Earth Minerals has agreed to acquire 7.7% of in Auroch through a AS$650,000 share subscription
-- Auroch focusing current activities over five prospecting license, which have been applied for, in Namibia which are highly prospective for lithium
-- Auroch has a strong financial position: A$6.4 million in a cash and A$2 million in receivables
-- Auroch's balance sheet will be used to support an aggressive exploration programme targeting high-grade lithium deposits in Namibia
Andrew Suckling, Executive Chairman of REM, commented:
"Rare Earth Minerals continues to deploy its expertise in identifying value investments in highly prospective lithium plays. We will leverage our mining, marketing, and lithium industry knowledge and experience to provide continuing support to Auroch, and to assist management and develop these prospects rapidly up the development curve. We look forward to a close collaboration with the management of Auroch as it develops its lithium interests."
Use of Funds
The placing funds, along with Auroch's existing cash (combined $6.4 million) will be used in part to fund an aggressive exploration and development programme, targeting high-grade lithium in pegmatites, similar to those that have been successfully commercialised in western Australia over the last three years.
Auroch is currently focusing its activities over five Exclusive Prospective Licenses ("EPL") in the Karibib area of Namibia, which have been applied for. The license applications focus on a region that has strong geological evidence of a significant number of late tectonic granites and associated Lithium Caesium Tantalum pegmatite swarms. Ninety percent of Namibia's historic lithium production comes from this terrain and geological mapping by the Namibian government has identified over 100 pegmatite occurrences in the area. Auroch believes this project represents an exciting early stage lithium exploration opportunity, in one of Africa's most stable and mining investment friendly countries.
Details of Auroch's Share Subscription
Rare Earth Minerals has agreed to subscribe for AU$ 650,000 at AU$ 0.10 per share as part of a placement in Auroch for a total of AU$ 750,000 at AU$ 0.10 per share together with half an option with each share subscribed for. These options are exercisable up and until the 28 October 2018 at an exercise price of AU$0.20. As part of the subscription, Rare Earth Minerals will receive options over a further 3.25 million shares at an exercise price of AS$0.20, valid until 28 October 2018. It is anticipated the completion of this financing will occur in early December 2016, at which point Rare Earth Minerals have agreed to voluntarily escrowed their shares for a six-month period.
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.
For further information, please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
WH Ireland Limited (Nomad & Broker) +44 (0) 207 220 1666
Square1 Consulting +44 (0) 207 929 5599
About Rare Earth Minerals
Rare Earth Minerals invests across the globe, principally in lithium mining projects. Its primary strategy is 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 and Australia. The Mexican and Czech deposits have published Indicated and Inferred Mineral Resources of 11.3 million tonnes of Lithium Carbonate Equivalent.
This information is provided by RNS
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December 02, 2016 02:01 ET (07:01 GMT)