LONDON (Alliance News) - Rare Earth Minerals PLC Tuesday said it has paid USD1 million to joint venture partner Bacanora Minerals Ltd to raise its direct interest in the Megalit Lithium project to 30%, from 10%.
The joint venture includes the San Gabriel, Buenavista and Megalit concessions in Mexico and surrounds the Sonora Lithium Project.
The early payment of the USD1 million by Rare Earth secures its rights to buy a 30% direct interest ahead of time. Rare Earth has first refusal to negotiate terms to increase its stake in Megalit to a maximum of 49.9%.
"Rare Earth envisages an fruitful time ahead for the Sonora Lithium Project, highlighted by the recent press reports regarding consolidation in the lithium production sector and potentially significant increases in demand for lithium in the coming years, driven in particular by the automotive sector and their publicised expansion plans for electric and hybrid vehicles," said Rare Earth Chairman David Lenigas.
Rare Earth shares were trading up 2.7% to 1.72 pence on Tuesday, while Bacanora shares were down 0.3% to 83 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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