LONDON (Alliance News)
– Rare Earth Minerals PLC Wednesday announced that it has conditionally raised
GBP4.6 million gross at 0.4 pence per share to fund the expansion of its
Mexican lithium interests.
The rare metals and
minerals projects investment company said it raised GBP1.4 million in direct
subscriptions from investors, and Hume Capital Securities PLC has raised GBP3.2
million through a conditional placing from institutional and private client investors.
The company said the
funds will allow it to continue to fund the development of its joint venture
projects and to look into REM’s exposure to the wider Sonora Lithium project in
northern Mexico, through potential additional purchases of the shares of
partner Bacanora Minerals Ltd.
On Monday, the company
announced that it has completed stage-two drilling at the Fleur-El Sauz Lithium
Project and said plans are moving forward with the development of the site.
The company also
recently announced that an additional seven new holes at the site showed
lithium values averaging 1,683 parts per million over 20.88 metres in the upper
clay and 4,821 parts per million over 20.88 metres in the lower clay, in line
with expectations.
At the time, REM said
an additional five holes drilled further along strike to the southeast had
extended the deposit by three kilometres further than previously drilled, with
analytical results pending.
Furthermore, the
company announced in January that it plans to build a new pilot plant to take
advantage of positive recent results. The company said on Monday that it
expects construction to be complete in roughly six weeks and that it now
considers its goal of producing battery grade lithium carbonate very possible.
REM said Wednesday it
has sufficient funds to meet its current commitments in Mexico, and those for
its Greenland and Australian projects during 2014.
The company currently
owns a direct 30% interest in the Mexican Fleur-El Sauz Lithium Project, with
an NI 43-101 compliant resource of 1.5 million tonnes of Lithium Carbonate
identified from Stage 1 drilling, plus a 3.17% shareholding in its joint
venture partner, Bacanora.
REM shares were down
16% to 0.460 pence, putting it in the top-five AIM losers in early trading Wednesday.
By Tom McIvor;
[email protected]; @TomMcIvor1
