13th Jul 2016 08:29
LONDON (Alliance News) - Rare Earth Minerals PLC on Wednesday said Macarthur Minerals Ltd, an exploration and production company in which it holds a stake, has entered into a new conditional farm-in agreement.
Rare Earth holds a 15.5% stake in Macarthur Minerals, an Australian company listed in Toronto.
In a statement on Wednesday, Macarthur said it has agreed to enter into a conditional binding memorandum of understanding for a Canadian lithium company to farm in for an initial 51% interest in Macarthur's lithium acreage at Ravensthorpe in south west Australia, for a minimum expenditure of AUD2.0 million.
The Ravensthorpe acreage is around 7.0 kilometres from the Mount Cattlin lithium project, which is currently mining and processing spodumene and tantalum concentrate, targeting production of around 150,000 tonnes for 2017.
"Macarthur Minerals continues to make rapid progress on the Ravensthorpe. The farm-in is the latest evidence of that," said Rare Minerals Chief Executive Kiran Morzaria.
Shares in Rare Earth were down 0.6% at 0.477 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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