LONDON (ShareCast) - Rare Earth Minerals has increased its stake in Bacanora Minerals to five per cent from 3.17 per cent through further on-market purchases totaling 317,000 pounds.

The acquisition brings REM’s total economic interest in the Fleur-El Sauz joint-venture with Bacanora in northern Mexico to approximately 33.5%.

David Lenigas, Chairman, said: "Tesla Motor's news in recent days, of their plans to build a ‘Gigafactory’ in the United States to produce significant quantities of lithium ion batteries and its potential effect on increasing global demand for lithium, has accelerated REM's ambition of increasing the company's overall exposure to the Sonora Lithium Project in northern Mexico.

"We currently own 30% of the expanding Fleur- El Sauz Lithium Project and we are now seeking to increase ownership of our joint-venture partner, Bacanora. The Sonora Lithium Project, which includes Bacanora's 100% owned La Ventana deposit and our joint venture on the Fleur- El Sauz concessions already has drill defined NI 43-101 compliant inferred resources totalling over 2.3m tonnes of Lithium Carbonate.

"At current representative prices of between $5,000 and US$6,000 per tonne for battery grade Lithium Carbonate, the Sonora project is a very significant lithium resource in terms of the potential value of lithium in the ground."

As of 14:13 the share price had risen 2.27% to 0.45p.

WS

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