Bacanora Minerals Board Changes

RNS Number : 1540V

Rare Earth Minerals PLC

26 January 2017

 

Rare Earth Minerals Plc.

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

Bacanora Minerals Board Changes

Rare Earth Minerals Plc (AIM/ISDX: REM; OTC: REMMY)) announces that Kiran Morzaria, Chief Executive Officer and Director of Rare Earth Minerals, has today stepped down as a Non-Executive Director of Bacanora Minerals Ltd ("Bacanora").

Bacanora is focused on developing the Sonora Project ("the Project" or "Sonora") in Mexico into a world class lithium carbonate producer. The Project is planned to commence production in 2019, with the commissioning of a mine and processing plant capable of delivering 17,500 tonnes per year of battery-grade Li2CO3 for the first two years, following which it is anticipated  that operations will be expanded to 35,000 tonnes Li2CO3 per year.

REM holds an interest in the Project though its 19.12% holding in Bacanora and the joint venture interests of 30% in each of Mexalit S.A. de CV ("Mexalit") and Megalit S.A. de CV ("Megalit") as fully described below.

Kiran Morzaria, the Chief Executive Officer of REM, commented:

"I have been pleased to serve on the board of Bacanora Minerals and be part of the development of the Sonora lithium project. I look forward to seeing the progress as Sonora advances through development, construction and planned commissioning and production in 2019.

REM's diverse lithium portfolio is advancing up the value curve, and stepping down from my Non-Executive role at Bacanora, will allow me to further focus on the additional workload associated with our active investment approach in what we believe will be a busy year.

We have identified assets that we believe have strategic cost advantages in the current lithium market. I will look to leverage our resources, inclusive our access to key marketing, political and industry contacts to support management in advancing these projects and delivering high rates of return on our investments."

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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For further information, please contact
Rare Earth Minerals plc	[phone]
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)	[phone]
James Joyce
James Bavister
Square1 Consulting	[phone]
David Bick

About Rare Earth Minerals:

Rare Earth Minerals invests across the globe, principally in lithium mining projects. Its primary strategy is taking significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The Rare Earth Minerals board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. REM's goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.

Rare Earth Minerals are major shareholders of the Sonora Lithium Project in northern Mexico and the Cinovec Lithium and Tin Project in the Czech Republic. Rare Earth Minerals portfolio also includes significant lithium-based investments the USA, Australia and Namibia. The Mexican and Czech deposits have published Indicated and Inferred Mineral Resources of 11.3 million tonnes of Lithium Carbonate Equivalent.

The Sonora Lithium Project and Details of REM's ownership:

REM owns a direct interest of 19.12% of Bacanora. The Sonora Lithium Project is comprised of the following lithium properties:

- La Ventana, La Ventana 1, and Megalit concessions, which are 100 percent owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 19.12% of Bacanora, has an indirect interest in these concessions of 19.12%.

- El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). REM has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.12% in Bacanora, has a total economic interest in Mexalit of 43.38%.

- The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V ("Megalit"). REM has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.12% in Bacanora, has a total economic interest in Megalit of 43.38%.

 

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