LONDON (Alliance News) – Rare Earth Minerals PLC Monday said that it bought GBP1.1 million worth of shares in Bacanora Minerals Ltd during Bacanora's initial public offering on Friday.
Mexico-focused resources company Rare Earth Minerals, which partners Bacanora at the Sonora lithium project, said that on Friday it bought GBP1.1 million in shares at Bacanora, giving it an 11.69% stake in the company.Bacanora has been trading at a significant premium following its AIM listing in London. The company is now trading at 90.30 pence, almost three times its IPO price of 33 pence per share.
The company said the interest, along with its own 30% direct interest in the Fleur- El Sauz Lithium Joint Venture and its 10% direct interest in the 94,000 hectare Megalit Joint Venture, results in a total economic interest in Fleur- El Sauz of approximately 38.18% and a total economic interest in Megalit of roughly 20.51%.
Earlier in July, REM said it had increased its stake in Bacanora to 12.14% through market purchases but the AIM listing enlarged Bacanora's share capital and, despite buying further shares in the company, REM's overall holding has fallen.
"The AIM admission and associated placing by Bacanora has allowed a wider audience to participate in what I believe is a globally significant Lithium project. As part of our strategy to increase our exposure to the Sonora Lithium Project we have continued to purchase additional shares in Bacanora," REM Chairman David Lenigas said in a statement.
Rare Earth Minerals shares were down 3.4% to 1.76 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
