Update on Magdalena Borate Project

RNS Number : 3243U

Rare Earth Minerals PLC

15 October 2014

 

Rare Earth Minerals Plc.

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

Update on Magdalena Borate Project

Rare Earth Minerals (AIM: REM) is pleased to announce Bacanora Minerals Ltd ("Bacanora"), a company that REM has a 11.3% shareholding, have announced that is advancing the Magdalena Borate Project toward the feasibility of boric acid production.

The full news release from Bacanora, dated 14 October 2014, is shown below.

Kiran Morzaria, the Company's Chief Executive Officer commented:

"We are very pleased with the progress being made on the Magdalena Borate Project. In January 2013, Bacanora reported a net present value on this asset of US$113 million. The continued advancement of this project provides accretive value to the REM shareholding in Bacanora, and we look forward to hearing and reporting on the progress being made on this asset"

For further information please contact:

Rare Earth Minerals plc                                                                       [phone]

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Joint Broker)                                     [phone]

James Joyce

Mark Leonard

Hume Capital plc (Joint Broker)                                                          [phone]

Guy Peters

Jon Belliss

Square1 Consulting

David Bick                                                                                           [phone]

Mark Longson

Bacanora Minerals Ltd News Release dated 14 October, 2014:

Bacanora Minerals Limited

("Bacanora" or the "Company") (TSX VENTURE:BCN)(AIM:BCN) is pleased to provide an update on progress with activities underway for the purpose of advancing the Magdalena Borate Project toward feasibility of boric acid production. The Company has retained the services of Process Engineering LLC to design a plant capable of producing up to 25,000 tonnes of boric acid per year from borate minerals to be mined from the El Cajon deposit. The Company also continues performing metallurgical tests in order to refine and optimise the boric acid production at pilot scale.

Further steps for the pre-feasibility programme consist of:

Infill diamond drilling and bulk sampling for metallurgical tests of Unit B;

Detailed full-scale boric acid plant design and costing;

Revised mine plan; and

Initiation of environmental baseline studies and mine permitting.

The pre-feasibility studies are expected to be completed during Q1 2015.

Martin Vidal, President of Bacanora, commented:

"Following the strategic shift from lower value colemanite concentrate production, we are very pleased with the work performed and results obtained in our boric acid pilot plant, resulting in the continuous and systematic production of high purity boric acid. The Company is advancing the project through the pre-feasibility stage by completing engineering design work, updating the mine plan and obtaining necessary capital and operating cost data for the pre-feasibility report which we expect to be completed in Q1 2015".

About the El Cajon Borate Deposit:

The El Cajon deposit is the most advanced of several borate targets within the Magdalena Borate Project. Concessions constituting the Magdalena Borate Project are 100 per cent. owned by Bacanora's wholly-owned subsidiary, Minera Sonora Borax S.A. de C.V. The project has NI 43-101 compliant drilled indicated borate resources of 11 million tonnes averaging 10.6 per cent. B2O3 in three units from which metallurgical test work has demonstrated, on a pilot plant scale, that boric acid is recoverable.

Carl G. Verley, P.Geo. is the Qualified Person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the AIM Note for Mining and Oil and Gas Companies that has reviewed and approved the technical contents of this news release.

ABOUT BACANORA:

Bacanora Minerals Ltd. is a Canadian and London listed junior minerals explorer (TSX VENTURE:BCN) and (AIM:BCN), whose projects are located in the northern Mexican state of Sonora. The Company's focus is on demonstrating feasibility of its lithium and borate deposits.

Reader Advisory

Except for statements of historical fact, this news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to the further drilling and pre-feasibility work to be completed, in addition to the potential plant design. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: commodity price volatility; general economic conditions in Canada, the United States, Mexico and globally; industry conditions, governmental regulation, including environmental regulation; unanticipated operating events or performance; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; competition for, among other things, capital, skilled personnel and supplies; changes in tax laws; and the other risk factors disclosed under our profile on SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Bacanora Minerals Ltd.

Colin Orr-Ewing

Non-Executive Chairman

[phone]

Bacanora Minerals Ltd.

Shane Shircliff

Chief Executive Officer

[phone]

Bacanora Minerals Ltd.

Martin Vidal

President

([phone]

 

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