12th Feb 2014 09:16
LONDON (Alliance News) - Rare Earth Minerals PLC Wednesday announced that it has conditionally raised GBP4.6 million gross at 0.4 pence per share to fund the expansion of its Mexican lithium interests.
The rare metals and minerals projects investment company said it raised GBP1.4 million in direct subscriptions from investors, and Hume Capital Securities PLC has raised GBP3.2 million through a conditional placing from institutional and private client investors.
The company said the funds will allow it to continue to fund the development of its joint venture projects and to look into REM's exposure to the wider Sonora Lithium project in northern Mexico, through potential additional purchases of the shares of partner Bacanora Minerals Ltd.
On Monday, the company announced that it has completed stage-two drilling at the Fleur-El Sauz Lithium Project and said plans are moving forward with the development of the site.
The company also recently announced that an additional seven new holes at the site showed lithium values averaging 1,683 parts per million over 20.88 metres in the upper clay and 4,821 parts per million over 20.88 metres in the lower clay, in line with expectations.
At the time, REM said an additional five holes drilled further along strike to the southeast had extended the deposit by three kilometres further than previously drilled, with analytical results pending.
Furthermore, the company announced in January that it plans to build a new pilot plant to take advantage of positive recent results. The company said on Monday that it expects construction to be complete in roughly six weeks and that it now considers its goal of producing battery grade lithium carbonate very possible.
REM said Wednesday it has sufficient funds to meet its current commitments in Mexico, and those for its Greenland and Australian projects during 2014.
The company currently owns a direct 30% interest in the Mexican Fleur-El Sauz Lithium Project, with an NI 43-101 compliant resource of 1.5 million tonnes of Lithium Carbonate identified from Stage 1 drilling, plus a 3.17% shareholding in its joint venture partner, Bacanora.
REM shares were down 16% to 0.460 pence, putting it in the top-five AIM losers in early trading Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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