Bacanora Minerals announces its Q3 2016 results

RNS Number : 7416Z

Rare Earth Minerals PLC

31 May 2016

 

Rare Earth Minerals Plc.

("Rare Earth Minerals", "REM" or "the Company")

Bacanora Minerals Ltd announces its Q3 2016 results

Bacanora Minerals Ltd ("Bacanora Minerals"), in which REM owns a 15.6% shareholding, has announced its Q3 2016 results. The highlights of the news release is shown below and the full release is available at: 

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/BCN/12834017.html

Highlights for Q3 2016

·    On April 15, 2016, Bacanora Minerals filed on SEDAR the results of the Pre-Feasibility Study ("PFS") for the development of mine and lithium carbonate ("Li2CO3") processing facility at the Sonora Lithium Project ("Project"). The positive results estimate a pre-tax Internal Rate of Return of 29% and an associated Net Present Value of US$776 million at an 8% discount rate. The PFS was prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The PFS was release on April 15, 2016, with updated mineral resource estimates and the same positive economic results. 

·    The results highlight the strong economic potential of producing up to 35,000 tonnes of battery grade Li2CO3, and up to 50,000 tonnes of potassium sulphate ("K2SO4") per year. Refer to Bacanora Minerals website and SEDAR for the PFS in its entirety.

·    Bacanora Minerals continued to upgrade its pilot plant in Hermosillo and is currently producing lithium carbonate samples for distribution to potential partners in Asia, in Q3 2016.

·    Discussions are continuing with various Asian offtake partners, banks, debt providers and strategic investors. Bacanora Minerals is focused on developing a debt, equity and offtake project financing strategy for the Stage 1, 17,500tpa lithium carbonate project.

·    Bacanora Minerals has commenced a Feasibility Study ("FS") for a two stage mine and processing facility to produce up to 35,000 tpa of lithium carbonate at the Project in northern Mexico. As part of this study we will be initiating an infill reserve drilling program, appointing international engineering and technical consultants to undertake the geological resource modeling, metallurgical testwork, mine designs and process engineering, as well as recruiting additional technical personnel with lithium development and operating expertise. Bacanora Minerals is currently scheduling to have the FS completed in Q1 2017.

·    Subsequent to quarter end, Bacanora Minerals announced that it has raised £7,702,500 via the placing of 9,750,000 units (the "Placing Units") at a price of £0.79 per Placing Unit with certain funds and accounts managed by BlackRock.  Each Placing Unit is comprised of one new common share of Bacanora Minerals and 0.3 of one common share purchase warrant, with each whole warrant being exercisable into one common share at a price of £0.79 at any time subsequent to July 25, 2016, but on or before September 30, 2016. 

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.

For further information, please contact: 

Rare Earth Minerals plc                                                                                      [phone]

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)                                                         [phone]

James Joyce

Mark Leonard

Square1 Consulting                                                                                             [phone]

David Bick

Brian Alexander

 

END

 

 

MSCBGGDUCUXBGLB