Mexico Lithium Joint Venture Update

RNS Number : 1856N

Rare Earth Minerals PLC

04 September 2013

 



4 September 2013

Rare Earth minerals plc

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

Mexico Lithium Joint Venture Update - 60% Increase in Area of Concessions

Rare Earth Minerals (AIM: REM) is pleased to announce that it has today been informed by its joint venture partner Bacanora Mineral Ltd ("Bacanora") that additional concessions, contiguous with the existing Fleur and El-Sauz concessions the ("Existing Concessions") that contain the Fleur-El Sauz Lithium deposit in northern Mexico, have been staked and mineral rights secured.

The acreage under the Joint Venture has as a result been increased by approximately 60% from 3,305 hectares to 5,325 hectares.

The new total of 5,325 hectares of concessions, are the subject of a joint venture between Bacanora and REM, pursuant to which REM has given notice to increase its interest in the joint venture from 10% to 30% and has a first right of refusal to negotiate a deal to further increase its interest in the joint venture to 49.9%. 

These new concessions cover strategic ground to the east and north of the Existing Concessions where it is believed that the Lithium-bearing clay units within the Existing Concessions identified by the stage 1 drilling programme may extend down-dip and eastward.

David Lenigas, the Company's Chairman commented:

"The Company is excited that the Joint Venture has been able to secure these additional concessions that have significantly increased the area of mineral rights around the Fleur-El Sauz Lithium Project by 60% and in so doing, importantly restricts access by potential competitors to the general project area.

"The newly acquired concessions provide a solid opportunity for further increasing the lithium resources on the Joint Venture lands, which have been calculated  to contain a gross inferred resource of 1,782,000 tonnes of lithium carbonate at a 1,000 ppm Li cut-off."

For further information please contact:     

Rare Earth Minerals Plc                                                              www.rareearthmineralsplc.com 

David Lenigas, Chairman                                                           

[phone]                                                                

 NOMAD - WH Ireland Ltd.

James Joyce/Nick Field

[phone]

PR - Pelham Bell Pottinger

Charlie Vivian/ Weston Macklem

[phone]

 

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