Sonora Lithium Project - Offtaker Update

RNS Number : 3891I

Rare Earth Minerals PLC

08 December 2015

 

08 December 2015

Rare Earth Minerals Plc.

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

Sonora Lithium Project - Offtaker Update 

Rare Earth Minerals Plc (LSE AIM: REM) notes the announcement by Bacanora Minerals Ltd ("Bacanora") and is pleased to announce an update on the continuing development of a number of Bacanora's strategic relationships with international lithium trading companies and mining companies for the sale of lithium products, in addition to the conditional supply agreement previously announced. Bacanora is 17.19% owned by REM and the operator of the Sonora Lithium Project.

The recent £8.8 million private placement undertaken by Bacanora significantly boosted cash reserves and ensures that more than sufficient funding is available to upgrade the pilot plant in order to allow for continuous metallurgical operations, which are scheduled to commence in January 2016. The treatment of bulk lithium samples from the Sonora mine at the Hermosillo pilot plant will produce off-take samples for potential end users in Europe, Asia and North America.

As part of this strategy, Bacanora has already completed a number of detailed site and plant visits with potential off-take partners to facilitate and expedite lithium sample optimisation and is in the process of negotiating a number of Letters of Intent, Memoranda of Understanding, draft Agreements and Non-Disclosure Agreements with these potential partners.

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

REM owns a direct interest of 17.19% of Bacanora.

The Sonora Lithium Project is comprised of the following lithium properties:

§ La Ventana, La Ventana 1, and Megalit concessions, which are 100 per cent. owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 17.19% of Bacanora, has an indirect interest in these concessions of 17.19%.

§ 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 17.19% in Bacanora, has a total economic interest in Mexalit of 42.04%.

§ 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 17.19% in Bacanora, has a total economic interest in Megalit of 42.04%.

Ends

For further information please contact: 

Rare Earth Minerals plc                                                                                      [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker)                                                        [phone]

James Joyce

Mark Leonard

Square1 Consulting

David Bick                                                                                                            [phone]

Brian Alexander

 

END

 

 

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