6th Jun 2014 06:58
LONDON (Alliance News) - Rare Earth Minerals PLC Friday said it has further increased its stake in Bacanora Minerals Ltd, its joint venture partner in the Sonora lithium project in Mexico, to 11.27%, from 10.18% previously, just two days after revealing a resource upgrade for the project.
In a statement, Rare Earth said it spent GBP328,200 making further on-market purchases of Bacanora shares.
The increased stake, when put together with Rare Earth Mineral's 30% direct interest in the Fleur-El Sauz lithium joint venture and the 10% direct interest in the 94,000 hectare Megalit joint venture, means it now has a total economic interest in Fleur- El Sauz of approximately 37.89% and a total economic interest in Megalit of approximately 20.14%.
"We continue to steadily increase our strategic shareholding in Bacanora Minerals, as we seek to increase REM's exposure to the Sonora Lithium Project in Mexico," Rare Earth Minerals Chairman David Lenegas said in a statement.
Rare Earth had seen its shares rise Wednesday after it said that the mineral resource at the Sonara lithium project had been increased by 37%, and upgraded to the indicated category from inferred.
The project contains the La Ventana deposit, and the El Sauz and Fleur joint venture mines.
The company has been gradually increasing its stake in Bacanora and the joint ventures over recent months, in tandem with a string of good news about the potential for the project.
By Steve McGrath; [email protected]; @SteveMcGrath1
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