Last checked at 25 Apr 2014 07:00
25 April 2014
Rare Earth Minerals Plc.
("Rare Earth Minerals", "REM" or "the Company")
Exploration to Commence in Greenland
Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to announce a significant development on its 853 km2 concession package in south-west Greenland (the "Licences") with an upcoming exploration program. The exploration is to be assisted by Greenland Minerals and Energy Ltd (GMEL, ASX:GGG); a leading operator in Greenland's emerging minerals industry. The exploration program is focussed on REM's four licenses, which flank GMEL's exploration licenses that host the Kvanefjeld rare earth-uranium deposit, one of the largest rare earth deposits in the world.
Kvanefjeld has reported JORC compliant resources of 956 Mt containing 575 Mlbs U3O8, 10.33 Mt Total Rare Earth Oxides ("TREO"), 2.25 Mt zinc, with TREOs including 0.37 Mt of heavy REO and 0.84 Mt yttrium oxide. Kvanefjeld is currently undergoing a definitive feasibility study and permitting for the mine is expected to start towards the end of 2014. GMEL recently announced an MOU with China Non‐Ferrous Metal Industry's Foreign Engineering and Construction Co. Ltd. (NFC) for both parties to co-operate in aligning the rare earth concentrates from GMEL's Kvanefjeld Project, with NFC's substantial rare earth separation experience and capacity, to create a powerful force in global rare earth supply.
David Lenigas, the Company's Chairman, commented:
"This is a very significant development for REM that will see our exploration leases evaluated by experienced operators in Greenland, with target generation and exploration to commence immediately.
"REM's licenses cover prospective areas for both rare earth elements and gold. The exploration work to date has broadly defined a number of key targets and we are now in a position with our strategic partners to embark on a comprehensive exploration programme."
The Agreement:
This co-operation agreement between REM and GMEL will see an accelerated exploration programme commence on REM's licenses within a month, utilising GMELs extensive in-country skills and exploration knowhow. These Licenses are seen as being potentially prospective for both rare earth elements and gold. The initial areas of focus for the upcoming exploration programme will be on:
License 2013/20 - This 21 km2 license directly abuts western flank the world class Kvanefjeld deposit, which is owned by GMEL. A detailed surface exploration programme will focus on identifying possible extensions to the Kvanefjeld deposit.
License 2012/15 - This 334 km2 license covers the majority of one of the significant crustal shear zones in Greenland (Saarloq Shear Zone). This type of shear is commonly prospective for gold mineralisation. The license area is approximately 30 km north-west of the Vagar Project, part of Nuna Minerals A/S flagship South Greenland Gold Project, which has returned grades from drilling on the Discovery drillhole of 79 metres at 0.96 g/t gold (including 23.3 metres at 2.47 g/t gold) and surface chanel sampling up to 13 metres at 70.1 g/t gold and rock samples up to 2,533 g/t gold. Lineament analysis has already been carried out using satellite imagery and has confirmed the presence of a large scale structural feature. REM has now commissioned SRK Exploration ("SRK") to carry out a detailed structural interpretation of the area. This will form the basis of the exploration programme to be carried out over the coming months.
The terms of the Co-Operation Agreement with GMEL, are summarised as follows:
· GMEL will take immediate day-to-day management control of REM's four Greenland Licenses 2012/13, 2012/14, 2012/15 and 2013/20 for the 2014 exploration season.
· REM will pay all costs associated with the 2014 exploration programme.
· GMEL are to be immediately issued 20 million ordinary shares in REM as a one off consideration (the "Consideration Shares") for GMEL providing important Governmental, technical, administrative and management assistance in Greenland.
Application has been made for the 20 million Consideration Shares to be admitted to trading on AIM, which is expected by 1 May 2014. The Consideration Shares will rank pari passu in all respects with the Company's existing ordinary shares. Following issue of the Placing Shares, the Company will have a total of 5,187,952,383 Shares in issue.
Total Voting Rights
The Company holds zero Shares in treasury. Therefore the total number of Shares with voting rights after the issue of the Consideration Shares will be 5,187,952,383, which figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Qualified Person
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. Kiran is the Chief Executive Officer of REM.
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For further information please contact:
Rare Earth Minerals plc +44 (0) 207 440 0647
David Lenigas
Kiran Morzaria
WH Ireland Limited (NOMAD & Joint Broker) +44 (0) 207 220 1666
James Joyce
Nick Field
Hume Capital plc (Joint Broker) +44 (0) 203 693 1470
Guy Peters
Jon Belliss
Square1 Consulting
David Bick +44 (0) 207 929 5599
Mark Longson