9th Sep 2013 10:38
LONDON (Alliance News) - Rare Earth Minerals PLC Monday said it has completed a 58% partial close of an existing equity swap agreement with YA Global Master SPV, Ltd.
The company, which conducts exploration and production of rare earth minerals in northern Mexico, said it is to receive GBP2.2 million as part of the equity swap without issuing any further equity.
The companies entered into a GBP150,000 equity swap agreement in June, which also called for REM to receive GBP12,500 per month over 12 months from September 2013.
Due to the recent jump in the share price of REM, YA Global Master SPV, Ltd. began to accelerate payments to the company resulting in 58% of the equity swap having been paid out already. YAGM now owns 7.8% of the company's issued share capital.
The company expects the further 42% to be received in a additional funding between December 2013 and August 2014.
"This injection of funds, without any dilution to the share capital of the company at this point in time, is an excellent result as we head in to an already fully funded Stage 2 drilling programme at the Fleur-El Sauz Lithium Project in northern Mexico. The funds will go towards further developments in Mexico and the Company's Greenland exploration acreage," Company Chairman David Lenigas said in a statement.
The announcement continues a range of positive information which has seen Rare Earth Minerals share price increase to 14 times its original price in the last month.
Rare Earth Minerals shares were up 0.066 pence, or 7.9% to 0.906 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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