Last checked at 4 May 2011 07:00
Rare Earth minerals plc
Acquisition of Interest in Canadian Properties
Rare Earth Minerals (AIM: REM) is pleased to announce that it has entered into an agreement to acquire interests in 5 claims (No's S111889 to S111893) in Saskatchewan, Canada . The claims are situated in the Mudjatik domain, an area which has seen several periods of intensive exploration activity and hosts many interesting mineral showings. The claims consist of 3 separate groups totaling approximately 4,855 hectares in area. They are located in north central Saskatchewan and range from 5 to 16 kilometres west of a major highway and power facilities.
Under its agreement with the individual vendors of the interest ('the Cup Lake Syndicate'), Rare Earth Minerals may earn up to a 51% interest in the above mentioned properties after having paid a cash settlement of $50,000 USD and incurring exploration expenditures of at least $30,000 within 3 months. The Cup Lake Syndicate will act as the operator of an initial sampling program and will produce a report within 30 days of completion of this program. After review of this report, Rare Earth Minerals may elect to further participate in the development of these properties on a pro rata basis or alternatively, to not participate, in which case interest will be reduced to zero.
The Cup Lake deal is the first Rare Earth Minerals investment since the Company shareholders resolved on the 29th November 2010 to adopt a change in investing policy to acquire a diverse portfolio of direct and indirect interests in exploration and producing Rare Earth Minerals and/or Metals projects and assets.
The agreement is conditional, inter-alia, on REM being satisfied with the title to the claims and the parties have agreed to use best efforts to have a final agreement confirming a closing date by 15 June 2011.
Background of the area;
During the 1950's exploration of was concentrated only on the accessible and mapped areas of the time. The focus was solely for uranium and was met with some success as uraninite showings were identified in numerous instances. In the 1960's exploration surged again, this time prospecting centered around the search for base metals and much of the area was flown with geophysical surveys. Drilling was undertaken and some anomalous nickel assays were obtained in core assays.
It was during these periods of exploration for other minerals that the potential for rare earth elements ("REE") was revealed. Monazite and allanite bearing porphyry dykes and irregular masses up to 30 feet wide were discovered, both have the potential for hosting heavy rare earth elements. Occurrences such as these suggest there may be sufficient mineralization in the area to support complex pegmatites hosting many types of rare earths. Drill and assay results seeking uranium and base metalsalso reported niobium and tantalum mineralization associated with uranium occurrences in pegmatites.
David Lenigas, Rare Earth Minerals Director and CEO states;
"The Cup Lake REE deal is the first of a number of investment opportunities that the Company is assessing. Historically this area has received considerable attention for base metals and Uranium, but never in terms of the exploiting rare earth potential. Current day technology has facilitated a tremendous demand for these elements and we are eager to commence exploration focused exclusively uncovering the rare earths of this prospective area".
Qualified Person's Statement.
Information in this announcement relates to information compiled by Carl G Verley, P.Geo who is a member of the Association of Professional Engineers and Geoscientists of British Columbia and is a Qualified Person with respect to the information disclosed herein.
For further information please contact:
Rare Earth Minerals Plc
David Lenigas, Director
+44 (0) 207 440 0640
W.H. Ireland
James Joyce
+44 (0) 207 220 1666