18th Mar 2016 08:35
LONDON (Alliance News) - Investment company Rare Earth Minerals PLC on Friday said it has entered into a subscription agreement for a 16% stake in Macarthur Minerals Ltd for CAD300,000.
Macarthur Minerals is an Australian exploration and development company which currently has two iron ore projects in Western Australia.
According to Rare Earth, Macarthur has applied for ten prospective lithium exploration licences in the Pilgangoora district, the Eastern Pilbara and the Mid-West region of Western Australia.
The subscription agreement is for 15 million units at a price of CAD0.02 each. Each unit is comprised of one common Macarthur share and one whole warrant to acquire a common share at an exercise price of CAD0.05 each for a period of 12 months from the date of issuance.
"This strategic investment provides REM exposure to some early-stage exploration assets in an area which is prospective for lithium. The Pilbara region has rapidly grown and been developing several of high-grade hard-rock lithium deposits, supplying spodumene concentrate to the lithium carbonate processing plants in China. Once granted we look forward to hearing updates on the initial exploration programmes on these applications," Chairman Andrew Suckling said in a statement.
Shares in Rare Earth were trading down 1.4% at 0.517 pence on Friday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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