Rare Earth Minerals PLC Bacanora Minerals Update (3004S)
December 20 2016 - 2:00AM
UK Regulatory
TIDMREM
RNS Number : 3004S
Rare Earth Minerals PLC
20 December 2016
Rare Earth Minerals Plc
("Rare Earth Minerals", "REM" or "the Company")
Update on Off-take Negotiations and Project Development
Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) is pleased to
report that Bacanora Minerals Ltd ("Bacanora"), have announced the
advancement of its long-term marketing and off-take strategy. In
addition, Bacanora has provided an update on the Definitive
Feasibility Study ("DFS") on the Sonora Lithium Project
("Project"). The full Bacanora announcement can be found at:
http://web.tmxmoney.com/article.php?newsid=6162055031003214&qm_symbol=BCN
REM holds an interest in the Project though its 19.12% holding
in Bacanora and the joint venture interests of 30% in each of
Mexalit S.A. de CV ("Mexalit") and Megalit S.A. de CV ("Megalit")
as fully described below. The Project update, Definitive
Feasibility Study work do not cover the Megalit joint venture
Highlights
-- Bacanora is in advanced discussions with a significant Asian
offtake partner for the supply of battery grade lithium carbonate
(Li(2) CO(3) ).
-- Battery Grade Li(2) CO(3) has been produced for the last six
months from the pilot plant in Hermosillo, Mexico. This production
has supported the development of Bacanora's long-term marketing and
off-take strategy
-- DFS aimed at establishing a production plan for a 35,000
("tpa") lithium carbonate operation at the Project (production is
contemplated to ramp up following an initial two years producing
17,500 tpa).
-- Bacanora planning to commence production of Li(2) CO(3) in 2019
-- DFS due for completion in the summer of 2017
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).
- Ends -
For further information, please contact:
Rare Earth Minerals plc
Andrew Suckling +44 (0) 207 440 0647
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
James Joyce
James Bavister
Square1 Consulting +44 (0) 207 929 5599
David Bick
Brain Alexander
The Sonora Lithium Project and Details of REM's ownership
REM owns a direct interest of 19.12% of Bacanora. The Sonora
Lithium Project is comprised of the following lithium
properties:
- La Ventana, La Ventana 1, and Megalit concessions, which are
100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a
wholly-owned subsidiary of Bacanora; REM, through its direct
interest of 19.12% of Bacanora, has an indirect interest in these
concessions of 19.12%.
- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions,
which are held by Mexilit S.A. de C.V. ("Mexilit"). REM has a 30%
direct interest in Mexalit through its Joint Venture with Bacanora,
and when combined with REM's direct interest of 19.12% in Bacanora,
has a total economic interest in Mexalit of 43.38%.
- The Buenavista, and San Gabriel concessions, which are held by
Megalit S.A de C.V ("Megalit"). REM has a 30% direct interest in
Megalit through its Joint Venture with Bacanora, and when combined
with REM's direct interest of 19.12% in Bacanora, has a total
economic interest in Megalit of 43.38%.
About Rare Earth Minerals
Rare Earth Minerals invests across the globe, principally in
lithium mining projects. Its primary strategy is to 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, Australia and
Namibia. 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
The company news service from the London Stock Exchange
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