24th Sep 2013 08:24
LONDON (Alliance News) - Rare Earth Minerals PLC Tuesday said it slightly narrowed its pretax losses as it moves towards first revenues at its joint-venture site in Mexico.
The exploration-and-development miner said it narrowed its pretax losses to GBP323,000 from GBP356,000 for the six months ended June 30.
As the company is yet to make any revenues, the savings came from a drop in administrative expenses to GBP275,000 from GBP356,000 over the period.
On September 19, REM appointed Kiran Mozaria as its new CEO and Donald Strang as its finance director as part of the company's development programme.
REM has completed a set of share placings so far this year, gathering GBP400,000 in March, GBP300,000 in June, and GBP750,000 in August. The company now has GBP2.4 million in cash and has fully paid for a 30% farm-in to a key lithium-mining joint venture in Mexico with Bacanora Minerals Ltd.
Additional payments of GBP1.5 million increased REM's holding in the Fleur-El Sauz site in Mexico to 30% and the company has the exclusive option to negotiate terms towards a maximum of 49.9% of the holding.
The company is beginning its second phase of testing at the Mexico site as it moves towards production.
"We have made enormous progress this year, particularly at the Fleur-El Sauz Lithium Project in northern Mexico. We strongly believe, based on the drilling results to date, that the project has the potential to become one of the world's foremost lithium resources," Executive Chairman David Lenigas said in a statement.
Rare Earth Minerals shares were down 5.66% to 0.684 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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