23rd May 2014 11:40
LONDON (Alliance News) - Rare Earth Minerals PLC said it has completed a full equity swap agreement with YA Global Master SPV Ltd, which has now provided a total of GBP3.0 million in cash funding since June last year.
In June 2013, mining investment firm entered into a GBP300,000 placing with YA Global Master, as well as a GBP150,000 equity swap agreement, which also called for Rare Earth to receive GBP12,500 per month over 12 months from September 2013, increasing if Rare Earth shares rose.
Due to the jump in the share price of Rare Earth last year - it was trading at .0490 pence at the time of the deal, compared to 0.590p Friday - YA Global Master began to accelerate payments to the company, resulting in 58% of the equity swap having been paid out by September.
"This YAGM equity swap has proved very successful for Rare Earth Minerals, having provided more than tenfold the original GBP300,000 funding envisaged and enabled Rare Earth Minerals to farm-in to the exciting Sonora Lithium Project in Mexico and pay for an extensive exploration and assessment programme, which continues today," Chairman David Lenigas said in a statement
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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