Last checked at 5 Dec 2013 07:00
5 December 2013
RARE EARTH MINERALS PLC
("Rare Earth Minerals", "REM" or "the Company")
Mexico Update - New lithium clays discovered and 1,800% increase in acreage
Rare Earth Minerals (AIM: REM) announces that lithium-bearing clay units in northern Mexico have now been identified at surface in 4 parallel trending sequences that are estimated to extend for at least 40 kilometres in strike length. A new joint venture ("JV #2") with Bacanora Minerals Ltd ("Bacanora") has been entered in to that covers these new discoveries and increases concessions under both joint ventures by over 1,880% from 5,325 hectares to 100,140 hectares (247,451 acres).
David Lenigas, the Company's Chairman commented:
"REM now has a direct interest in a quarter of a million acres of high prospective ground for lithium and potentially other valuable metals."
The new concessions cover strategic ground surrounding the entire Sonora Lithium Project, where lithium-bearing clay units have now been identified at surface in 4 parallel and arcuate north-westerly trending sequences that are estimated to extend for at least 40 kilometres in strike length. Reconnaissance work by Bacanora has identified clay units on the new concessions where surface samples of the clays have analysed up to 1,350 parts per million lithium.
The JV is preparing to initiate the first stage of an exploration program on the new concession, consisting of geological mapping, surface rock sampling and identification of lithium drill targets.
REM has agreed the new JV #2 deal with Bacanora on:
· The new Megalit concession staked by Bacanora totals approximately 94,815 hectares (234,291 acres) in area and is contiguous with and surrounds the entire Sonora Lithium Project in northern Mexico.
· Bacanora's key and strategic 1,500 hectare San Gabriel and 649 hectare Buenavista concessions which immediately joins their La Ventana deposit.
The key terms of the additional concessions package deal (JV #2) with Bacanora are:
· REM is to acquire an initial 10% interest in the additional concessions package by paying Bacanora $250,000 and spending $500,000 on exploration and drilling over a 12 month period.
· After the first 12 month period, REM then has the right, at its election, to increase that interest in the additional concessions package to 30% by paying Bacanora another $500,000 and spending a further $1,000,000 on drilling and exploration over a further 12 month period.
REM will have an exclusive right of first refusal to further negotiate terms to increase the interest in the additional concessions package to a maximum of 49.9%, provided the terms comply with the Company's stated investment strategy. This right of first refusal will expire on 1 December 2015.
Qualified Person's Statement:
Information in this announcement relates to information compiled by Carl G Verley, P.Geo, a consultant to the Company, 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.
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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) 20 7220 1666
James Joyce
Nick Field
XCAP Securities plc (Joint Broker) +44 (0) 207 101 7070
Guy Peters
Jon Belliss
Square1 Consulting
David Bick +44 (0) 207 929 5599
Mark Longson