LONDON (ShareCast) - (ShareCast News) - Mining group Rare Earth Minerals said it had mobilised a second drill rig in Mexico after signing a supply deal with lithium battery giant Tesla Motors.
The London-listed company, alongside its joint venture partner Bacanora Minerals, said it had completed drilling nine of the 18 holes at the Sonora Lithium project.

On Friday, Bacanora said it had reached an agreement with US-based Tesla, under which the latter would buy lithium hydroxide produced at the Sonora field, providing it meets a series of requirements.

In a statement released on Tuesday, Rare Earth said it was hoping to drill up the remaining holes on earlier this week.

"The positive drilling results received to date coupled with the supply agreement with Tesla, announced recently, have fuelled the drive to accelerate the drilling programme and the mobilisation of a second drill to the Sonora Lithium Project," said group executive chairman David Lenigas.

As of 1032 BST on Tuesday, Rare Earth shares were up 4.72% to 1.11p, while Bacanora shares were up 4.89% to 91.25.

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