17th Sep 2013 09:37
LONDON (Alliance News) - Rare Earth Minerals PLC Tuesday said it had made a further investment of USD186,000 in Bacanora Minerals Ltd and Western Lithium USA Corp, a day after it invested USD520,000 in those companies.
The minerals producer said it was building stakes in the companies to give it exposure to two other major lithium projects in which it currently has no exposure. It now holds 0.74% of Bacanora and 1.75% in Western Lithium.
Bacanora is Rare Earth's partner on its Fleur-El Sauz Lithium project in Mexico. Rare Earth has seen its shares soar in recent weeks after a string of good news about the project, and last month told Bacanora that it would exercise an option to increase its stake in the venture to 30%, from 10%, and it also has first right of refusal to further increase its stake to 49.9%.
After its acquisition of the Bacanora stake, Rare Earth Minerals said it now has a 30.52% economic interest in the joint venture.
Western Lithium's principal project is the Kings Valley, Nevada lithium carbonate deposit.
Rare Earth said it may buy more shares in the two companies, and will let the markets know when it does.
The stock was down 3.9% at 0.865 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Rare Earth Metals