TIDMREM
RNS Number : 8850W
Rare Earth Minerals PLC
14 February 2017
Rare Earth Minerals Plc
("Rare Earth Minerals" or "REM")
Macarthur Minerals Update
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 that it has
entered into a non exclusive mandate with the Tulshyan Group to
raise up to A$200 million with an initial tranche of A$50 million
to develop the Company's Ularring hematite iron ore project located
in Western Australia.
The Tulshyan Group made a strategic investment in the Company in
January this year. The Tulshyan Group, based in Singapore, is one
of the largest recyclers of scrap steel in the world, has a
significant shipping business with a fleet of over 30 ships and is
expanding its commercial aircraft leasing business. The Tulshyan
Group has significant experience in sales, marketing of steel and
iron ore and access to capital for potential development of the
Company's Western Australian iron ore projects.
The full Macarthur announcement can be found at:
http://web.tmxmoney.com/article.php?newsid=6726549416375718&qm_symbol=MMS
.
Australian Iron Ore Projects
Macarthur Minerals' iron ore projects are located on mining
tenements covering approximately 62km(2) located 175 km northwest
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.
The Company has been maintaining the core iron ore projects'
assets and they remain valuable assets having previously spent over
$60 million to develop them. 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 Minerals 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(2) .
The Company 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(3)
and was updated by Snowden Mining Industry Consultants, with an
Inferred Mineral Resource consisting of 1,316 Mt @ 30.1% Fe(4)
.
A Preliminary Assessment Report was prepared on the Moonshine
magnetite project by Snowden Mining Industry Consultants in 2011(5)
.
Terms of Mandate
The Company, through its 100% owned subsidiary, Macarthur
Australia Limited (MAL), has entered into a mandate with Jewel
Bright Limited, part of the Tulshyan Group. Jewel Bright Limited
will raise up to A$200 million via various tranches to fund the
Ularring hematite project, for a 10% fee on monies raised, a
specified amount of options in MAL and other conditions.
About Tulshyan Group
The Tulshyan Group (Singapore), which has been in business for
33 years, is established in four main businesses; ship owning, ship
recycling, aircraft leasing and diversified real estate. The
Tulshyan Group operates a fleet of over 30 ships, which consists of
tankers and specialised vessels. Tulshyan is one of the largest
recyclers of ships in the world. The Tulshyan Group has expanded to
commercial aircraft leasing, recently having purchased a new
A320-200 and a new Boeing 737-800. The aircraft are leased on long
term leases to first class airlines. Tulshyan is also in the
process of negotiating the purchase of another 5 young
aircrafts.
Admission of Shares
On 23 August 2013 a placing was announced to issue 150,000,000
new ordinary shares and on 29 August 165,000,000 an exercise of
warrants to subscribe for 165,000,000 new ordinary shares was
announced. REM notified the issue of these shares and their
application for admission to trading on AIM via RNS. Nonetheless
these 315,000,000 ordinary shares were never admitted to trading on
AIM.
Furthermore, on 21 May 2014 an RNS incorrectly stated that
6,000,001 new ordinary shares were expected to be admitted to
trading on AIM on 27 May 2014. The correct number of new ordinary
shares admitted was 26,000,001.
As such Rare Earth Minerals announces that it has made an
application for admission for 335,000,000 new ordinary shares to
trading on AIM. Admission of the new ordinary shares is expected to
occur on or around 20 February 2017.
For the avoidance of doubt these shares were issued to the
respective parties in August 2013 and May 2014 respectively and the
Company's previously stated issued share capital is correct, at
7,777,690,338 ordinary shares with no Ordinary Shares held in
treasury.
Therefore for the purpose of the Disclosure and Transparency
Rules, the above figure of 7,777,690,338 may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in Rare Earth Minerals under the FCA's
Disclosure and Transparency Rules.
Rare Earth Minerals plc +44 (0) 207 440 0647
Andrew Suckling
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
Brian Alexander
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) from CASS Business School.
(1) Previously announced on August 16, 2012 NI 43-101 Technical
Report filed October 1, 2012, titled "NI 43-101 Technical Report,
Macarthur Minerals Limited, Pre-Feasibility Study, Ularring
Hematite Project, Western Australia
(2) Previously announced on August 16, 2012 NI 43-101 Technical
Report filed October 1, 2012, titled "NI 43-101 Technical Report,
Macarthur Minerals Limited, Pre-Feasibility Study, Ularring
Hematite Project, Western Australia
(3) NI43-101 Technical Report filed December 17, 2009, titled
"NI43-101 Technical Report on Lake Giles Iron Ore Project: Western
Australia
(4) NI43-101 Technical Report filed March 25, 2011, titled
"Macarthur Minerals Limited: Moonshine and Moonshine North
Prospects, Lake Giles Iron Project, Western Australia, NI43-101
Technical Report - Preliminary Assessment
(5) NI43-101 Technical Report filed March 25, 2011, titled
"Macarthur Minerals Limited: Moonshine and Moonshine North
Prospects, Lake Giles Iron Project, Western Australia, NI43-101
Technical Report - Preliminary Assessment
This information is provided by RNS
The company news service from the London Stock Exchange
END
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