Last checked at 1 Dec 2011 11:39
Rare Earth minerals plc
Acquisition of Interest in Western Australian Properties
Rare Earth Minerals (AIM: REM) (the "Company") is pleased to announce that it has completed an agreement (the "Agreement") with Camelot Trust Corporation Limited ("Camelot") whereby the Company has acquired the entire issued share capital of Mojito Resources Limited which owns a 30% interest in the Yangibana rare earth project ("the Project") situated in the Gascoyne region of Western Australia.
The Project is centred on narrow, discontinuously outcropping ironstone dykes that have been shown to carry anomalous rare earths associated with monazite mineralisation. The rare earths comprise 15 elements with atomic numbers between 57 and 71, plus scandium and yttrium. The heavy rare earth oxides comprise the oxides of europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium and yttrium. The light rare earth oxides comprise the oxides of lanthium, cerium, praseodymium, neodymium and samarium.
Hastings Rare Metals Limited is the manager of the Project and holds a 60% interest. The Project has the potential to increase possible resources by additional drilling along strike in the oxide zone at selected sites and at depth in the as yet largely untested primary zone of the dykes. The ironstone dykes at Yangibana are the weathered surface expressions of ferrocarbonatite dykes which along with the associated fenitic alteration are considered to be sourced from an as yet undiscovered carbonatite intrusion which might have significant rare earth potential.
The consideration payable under the Agreement for the acquisition is £380,000 payable in cash and 250,000,000 ordinary shares in the issued share capital of the Company representing 17.3% of the issued share capital of the Company as at the date of their issue.
Application will be made for the new shares to be admitted to trading on AIM and it is expected that admission will take place on 8 December 2011. On the admission of the new shares the total number of ordinary shares of 0.01p each in the Company ("Ordinary Shares") in issue will be is 1,443,619,050. No shares are held in treasury. Therefore, the total number of Ordinary Shares in issue with voting rights is 1,443,619,050.
David Lenigas, Rare Earth Minerals Director and CEO states;
"The Yangibana REE deal is the second of a number of investment opportunities that the Company is assessing. We are keen to see exploration commence on the Project focussed on uncovering the rare earths of this prospective area".
For further information please contact:
Rare Earth Minerals Plc
David Lenigas, Director
+44 (0) 207 440 0640
W.H. Ireland
James Joyce
+44 (0) 207 220 1666