DJ Rare Earth Minerals PLC Strategic Investment In Macarthur Minerals
RNS Number : 8914T
Rare Earth Minerals PLC
11 January 2017
Rare Earth Minerals Plc
("Rare Earth Minerals" or "REM")
Macarthur Minerals Announces Strategic Investment by Tulshyan Group
Rare Earth Minerals Plc (AIM/ISDX: REM; OTC: REMMY)) is pleased to report that Macarthur Minerals ("Macarthur") in which REM currently owns a 16.56% shareholding, has announced an investment by the Tulshyan Group in Singapore. The Tulshyan Group has significant experience in shipping, sales, marketing of steel and iron ore and has access to capital to assist in the potential development of the Macarthur's Australian iron ore projects. The full Macarthur announcement can be found at: https://managemysite-storage1.s3.amazonaws.com/b278761b-e9b5-42d3-8c11-63f5a6f503e8/20170110%20Private%20Placement%20Tulshyan_FINALv2.pdf?AWSAccessKeyId=AKIAJMAIJ3LCFFQIYL2Q&Expires=1484124239&Signature=nbuqzT7ZjxbL377k0gl%2BuEquCqI%3D
Details on Macarthurs Iron Ore Projects
Macarthur Minerals' Iron Ore Projects are located on mining tenements covering approximately 62km(2) located 175 km north-west of Kalgoorlie in Western Australia (Figure 1 and Figure 2). Within the tenements, at least 35 km strike extent of outcropping banded iron formation ("BIF") occurs as low ridges, surrounded by intensely weathered and mostly unexposed granites, basalts and ultramafic rocks.
The Iron Ore Projects consist of two distinct mineral projects:
1. The Ularring Hematite Project: encompassing hematite iron ore ("hematite"), to be marketed as potential direct shipping and/or beneficiated iron ore; and
2. The Moonshine Magnetite Project: encompassing magnetite iron ore ("magnetite"), to be marketed as a beneficiated magnetite concentrate.
Macarthur has been maintaining the core Iron Ore Projects' assets, and they remain valuable assets having previously spent over $60 million to develop them, including the hematite project to a "shovel ready" stage. There is real potential for the Iron Ore Projects to add significant value with the recovery of global iron ore markets.
Since July 2006 Macarthur has drilled 1,841 reverse circulation percussion drill holes (142,443 metres) and 49 diamond holes (4,170 metres) targeting iron mineralisation associated with BIF units. Exploration at both Ularring Hematite and Moonshine Magnetite projects has been sufficient to allow the estimation of Mineral Resources for both projects.
The Ularring Hematite Project's Mineral Resource consists of Indicated 54.46 Mt @ 47.2% Fe and Inferred 25.99Mt @ 45.4% Fe(1) . Macarthur Minerals published a Pre-Feasibility Study in 2012, reporting Mineral Reserves.
Macarthur has received approval to develop an iron ore mine for the Ularring Hematite Project and associated infrastructure at the project location under the Environmental Protection Act 1986 and the Environmental and Biodiversity Conservation Act 1999.
The Inferred Mineral Resource estimate for the Moonshine Magnetite Project was initially prepared by CSA Global Pty Ltd and was updated by Snowden Mining Industry Consultants, with an Inferred Mineral Resource consisting of 1,316 Mt @ 30.1% Fe.
A Preliminary Assessment Report was prepared on the Moonshine Magnetite Project by Snowden Mining Industry Consultants in 2011.
Details of the Strategic Investment
Macarthur has entered into a share subscription agreement and received gross funds of C$243,750 from the Tulshyan Group for a private placement of 3,750,000 shares of Macarthur at a price of C$0.065 per share, to be held by the Company in escrow until closing.
The closing of the placement will occur as soon as possible after and subject to receipt of all necessary regulatory approvals including that of the TSX-V. The net proceeds from the private placement will be used for working capital purposes. The securities issued under the private placement will be subject to a statutory four-month plus one day hold period from the date of issuance.
After the closing of the placement, REM will hold approximately 16.15% of the issued equity of Macarthur and an option over a further 7,500,000 shares exercisable at C$0.05 per share.
The full Macarthur announcement can be found at:
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
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.
This information is provided by RNS
The company news service from the London Stock Exchange
(END) Dow Jones Newswires
January 11, 2017 03:49 ET (08:49 GMT)