LONDON (ShareCast) - Rare Earth Minerals (REM) said it had already wired the last one million dollars to Bacanora, it joint venture partner in Mexico, in order to speed up its 30 per cent ownership in their Fleur-El Sauz lithium project.

Under the terms of their agreement the Aim-listed company was to pay Bancanora $500,000 to move to the second stage of their joint venture and was then to spend $1m on further exploration and drilling on the lithium project over the next six months.

But it has now sent the entire £1.5m enabling it to lift its stake in the joint venture project to 30% from 10%. REM also has a first right refusal to lift its stake to 49.9%.

REM’s Chairman David Lenigas said: “The company thought it prudent to pay the last $1m earlier than planned.

“This payment will allow our joint venture partner to plan and execute a much larger drilling programme in Mexico with the certainty of funding from REM.”

It comes after REM’s share placing to raise £750,000 completed.

Shares in REM which have rocketed in the past month after it published encouraging drilling results from the Fleur-El Sauz project, rose a further 0.92% to 0.95p at 08:53 on Thursday.

TB

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE