LONDON (ShareCast) - Rare Earth Minerals (REM), the AIM-listed rare minerals miner, has increased its stake in the Megalit Lithium joint venture from 10% to 30%, the company announced on Tuesday.

At the end of May, Rare Earth had announced it intended to exercise the option with Bacanora Minerals, the group's joint venture partner, to increase its stake in Megalit up to 30% by paying $500,000.

As a result of that, Rare Earth had six months to pay a further $1m to its joint venture partner, funds which will be used for exploration and drilling on the Megalit concessions over the next 12 months.

"REM envisages a fruitful time ahead for the Sonora Lithium Project, highlighted by [...] potentially significant increases in demand for Lithium in the coming years, driven in particular by the automotive sector and their publicised expansion plans for electric and hybrid vehicles," said David Lenigas, Rare Earth's chairman.

"We are confident that Sonora is a deposit of some significance and sees it as vital to immediately secure and cement the maximum percentage interest currently available under our existing agreement with Bacanora."

The concessions surround the Sonora Lithium Project in Northern Mexico, an area considered highly prospective for delineating further Lithium and other Alkali metal resources.

Rare Earth shares were up 3.28% to 1.73p at 10:16 on Tuesday.

DC

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