Last checked at 13 Sep 2016 07:21
Rare Earth Minerals Plc
("Rare Earth Minerals", "REM" or "the Company")
Significant Capital Savings at the Cinovec Lithium - Tin Project
Rare Earth Mineral Plc (AIM: REM; OTC: REMMY) is pleased to report that European Metals Holdings Limited ("EMH"), in which REM owns a 16.4% shareholding, has announced significant reduction of pre-production capital costs.
A review of the original scoping study is being undertaken as part of the pre-feasibility study and has resulted in the identification of significant reductions to the previously-released capital expenditure estimations (CAPEX) for the Cinovec Lithium-Tin Project. The full EMH announcement can be found at: http://europeanmet.com/assets/13_Sept_2016_-_Significant_Capital_Savings_in_Reviewed_Scoping_Study_FINAL.pdf
The original scoping study was released on the 1 May 2015 and can be found at: http://europeanmet.com/assets/2015_05_01_-_Cinovec_Scopying_Study_FINAL.pdf
Highlights:
§ USD$ 85 million (-33%) saving on overall capital costs
§ USD$ 38 million saving on mining CAPEX costs
§ USD$ 47 million saving on lithium plant CAPEX costs
§ Improved design and operating procedures based on independent studies and market benchmarks
§ Savings, designs and operating procedures to be included in improved pre-feasibility study
Kiran Morzaria, Chief Executive of REM, commented:
"This large reduction of forecast capital costs is highly significant for the development of the Cinovec deposit. Cinovec is currently the largest lithium deposit in Europe and conveniently located in close proximity to multiple end-users. These forecasted lower capital cost improve the net present value, shorten payback periods and ultimately, in the board's view, assist in securing competitive development finance."
"In the coming months we look forward to reporting on Cinovec's continued progress, whether it be from the ongoing drilling program or the expected further improvements on aspects of the pre-feasibility study"
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).
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For further information, please contact:
Rare Earth Minerals plc
Andrew Suckling +1 (212) 933 9007
Kiran Morzaria +44 (0) 207 440 0647
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