Update on Macarthur Minerals

RNS Number : 7987N

Rare Earth Minerals PLC

31 October 2016

 

Rare Earth Minerals Plc

("Rare Earth Minerals" or "REM")

Macarthur Minerals Seeks ASX Listing of its Australian Lithium and Iron Ore Projects

Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) is pleased to report that Macarthur Minerals ("Macarthur") in which REM owns a 16.56% shareholding, is seeking to list its Australian lithium and iron ore projects on the Australian Securities Exchnage. The full Macarthur announcement can be found at: http://web.tmxmoney.com/article.php?newsid=5555054561576031&qm_symbol=MMS .

Macarthur Minerals Limited (TSX VENTURE: MMS) (the "Company" or "Macarthur Minerals") is pleased to announce that the board has resolved to progress an Australian Securities Exchange ("ASX") Initial Public Offering ("IPO") of its Australian lithium and iron ore projects, subject to regulatory approval. Macarthur Minerals will maintain majority ownership and control of the ASX IPO listed entity.

David Taplin, President, CEO and Director of Macarthur Minerals, commented:

"The board of Macarthur Minerals believes that an ASX IPO of its Australian subsidiaries, which hold its Australian 'hard rock' lithium and iron ore projects, will provide improved price realisation for those projects more consistent with its ASX listed peers. Work has already commenced on the ASX IPO process for the Australian subsidiaries. Australian investment and wealth management firm, Shaw and Partners, has expressed interest in acting as lead manager for the ASX IPO. An IPO of the Australian subsidiaries will provide Macarthur Minerals with a well-funded listed entity to advance development of the Australian lithium and iron ore projects."

The Company's wholly owned subsidiary, Macarthur Lithium Nevada Limited, will continue to advance the Stonewall Lithium Project, located in Nevada.

Australian 'Hard Rock' Lithium Projects

The Company has one of the largest lithium hard rock acreage packages in Australia, covering an area of 2,029 square kilometres (501,376 acres) across the Pilbara, Ravensthorpe and the Yalgoo/Edah regions of Western Australia. Initial reconnaissance across the Company's acreage has been encouraging, including initial assay results from rock chips of up to 3.75% lithium (Li₂O) received at the Yalgoo Lithium Project (see the Company's announcement dated October 12, 2016).

Australian Iron Ore Projects

The Company owns the Ularring Hematite and the Moonshine Magnetite Projects in the Yilgarn region of Western Australia. The Company has previously invested over A$60 million in progressing the Ularring Hematite Project beyond Pre-Feasibility[i] and the Moonshine Magnetite Project to a Preliminary Economic Assessment[ii]. The Ularring Hematite Project has received approval to develop an iron ore mine under Western Australian and Australian Federal environmental laws.

The Company believes that the iron ore projects remain valuable assets with the recovery of the global iron ore market, with a spot price of $US63.04 a tonne today[iii].

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

Brian Alexander

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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[i] NI43-101 Technical Report filed October 1, 2012, titled "NI 43-101 Technical Report, Macarthur Minerals Limited, Pre-Feasibility Study, Ularring Hematite Project, Western Australia" -- this report is not current.

[ii] NI43-101 Technical Report filed March 25, 2011, titled "Macarthur Minerals Limited: Moonshine and Moonshine North Prospects, Lake Giles Iron Project, Western Australia, NI43-101 Technical Report -- Preliminary Assessment" -- this report is no longer current.

[iii] Australian Financial Review, October 28, 2016.

 

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