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23 Feb 2017 15:23
Rare Earth Minerals Plc
("Rare Earth Minerals" or "REM")
Macarthur Minerals Update
Rare Earth Minerals Plc (AIM/NEX: 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 closed its fundraising for Macarthur Australia Limited ("Macarthur Australia") oversubscribed for A$1.4 million prior to Macarthur Australia's intended Initial Public Offering ("IPO") on the Australian Securities Exchange ("ASX").
The full Macarthur announcement can be found at: http://web.tmxmoney.com/article.php?newsid=8717715734522695&qm_symbol=MMS .
ASX IPO of Macarthur Australia Limited
The previously announced intended ASX IPO of the Company's Australian iron ore and lithium projects, is well advanced, targeted for opening in March/April 2017.
Prior to the intended IPO, Macarthur Minerals will be issued approximately 125 million shares or 91% of Macarthur Australia for consideration for sale of its subsidiaries, Macarthur Iron Ore Pty Ltd ("MIO") and Macarthur Lithium Pty Ltd ("MLi") to Macarthur Australia. MIO and MLi, respectively own the Australian iron ore and 'hard rock' lithium projects. The sale of MIO and MLi to Macarthur Australia has received conditional acceptance of the TSX Venture Exchange.
Pre-IPO investors will be issued approximately 12.7 million shares or 9% of Macarthur Australia, prior to the intended IPO. Pre-IPO subscription funds will be held in escrow until Macarthur Minerals has affected transfer of its subsidiaries to Macarthur Australia.
The board of Macarthur Minerals believes that an ASX IPO of its Australian subsidiaries, which hold its Australian iron ore and lithium projects, will provide improved price realisation for those projects more consistent with its ASX listed peers. Macarthur Australia intends to raise between approximately A$5 million and A$14 million in an ASX IPO with Macarthur Minerals retaining between approximately 60% and 77% of Macarthur Australia. In accordance with ASX Listing Rules the minimum IPO issue price is A$0.20 per share.
Funds raised in the intended IPO will allow Macarthur Australia to significantly advance the Australian iron ore and lithium projects.
Macarthur Minerals' wholly owned subsidiary, Macarthur Lithium Nevada Limited, will continue to advance the Stonewall Lithium Project, located in Nevada.
ABOUT MACARTHUR MINERALS LIMITED (TSX-V: MMS)
Macarthur Minerals Limited is an exploration and development company that is focused on identifying and developing its iron ore projects and its lithium exploration interests in Australia and Nevada. Macarthur has two advanced iron ore projects in Western Australia; the Ularring hematite project and the Moonshine magnetite project.
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.
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