LONDON (ShareCast) - Rare Earth Minerals (REM) has carried out a share placing to raise funds for the expansion of its Mexican lithium interests.

The 0.4p-a-share placing has conditionally raised £1.39m from investors and a further £3.2m from Hume Capital Securities.

The proceeds of the placing will enable REM to both continue to fund the development of its joint venture projects and also to look to increase its exposure to the wider Sonora Lithium Project in northern Mexico.

The project contains REM's joint venture partner Bacanora's La Ventana Lithium Project and its own joint venture interests in the Fleur-El Sauz and Megalit concessions, through potential additional purchases of Bacanora shares.

REM now has sufficient funds to meet its current commitments in Mexico, and those for its Greenland and Australian projects during 2014.

Chairman David Lenigas: "This funding puts REM in a stronger financial position and will enable the company to be able to increase its interests in the mexican joint venture and Sonora Lithium Project.

"REM will seek to increase both its direct holding in the existing Fleur-El Sauz joint venture, where REM have a first right of refusal to move from 30% to 49.9% of this joint venture and we will also be looking to increase our holding directly in Bacanora.

"Previously published resources at the Fleur-El Sauz Project have already defined a compliant resource of 1.5m tonnes of contained Lithium Carbonate and the 2nd stage and current drilling is expected to add significantly to this resource over the coming months."

The group added that it was "becoming increasingly excited" by the results that are being achieved on the Mexican concessions

"Not only are high grades being returned consistently, but the resource is close to and cropping at surface in many places over a long strike length with the associated implications this carries for eventual production costs."

NR

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