Rare Earth Minerals Plc
("Rare Earth Minerals", or "the Company")
Further Investment in the Cinovec Lithium - Tin Project and Corporate Update
Rare Earth Minerals Plc (AIM: REM; OTC REMMY) is pleased to announce that it has agreed to increase its strategic stake in one of the most significant lithium deposits in Europe, the Cinovec Lithium Deposit ("Cinovec") in the Czech Republic to 20.92% (including the exercise of options announced on 30 September 2016), through a direct holding in the share capital of European Metals Holdings Limited (ASX code: EMH) that owns 100 per cent of the exploration rights to Cinovec.
REM will acquire its additional holding in European Metals at a cost of approximately AUD 2.6 million via a placement of 5 million Chess Depositary Interests ('CDI's') by European Metals at an issue price of AUD 0.52.
The placement in EMH is subject to shareholder approval by the shareholders of EMH, which will be sought at the Company's AGM later this month.
These funds will be used by EMH to further develop the Cinovec Project, complete EMH's Preliminary Feasibility ("PFS"), and for working capital. Both the ongoing drilling and PFS are progressing well and we look forward reporting on the progress being made as the project develops.
REM announces that US$600,000 of its US$15 million convertible loan have been converted into 71,452,658 new ordinary shares in the Company at a price of 0.65 pence per share (the "Conversion").
Application will be made to the London Stock Exchange to admit the 71,452,658 new ordinary shares to trading on AIM. Admission of the new ordinary shares is expected to occur on or around 7 October 2016. The new ordinary shares will rank pari passu with the existing ordinary shares.
For the purpose of the Disclosure and Transparency Rules, following the issue of shares detailed above the enlarged issued share capital of the Company will comprise 7,551,550,036 ordinary shares with no Ordinary Shares held in treasury. Therefore the above figure of 7,551,550,036 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Rare Earth Minerals under the FCA's Disclosure and Transparency Rules.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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For further information, please contact:
Rare Earth Minerals plc
Andrew Suckling +1 (212) 933 9007
Kiran Morzaria +44 (0) 207 440 0647
WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666
Square1 Consulting +44 (0) 207 929 5599
This information is provided by RNS