Commenting on the Investment, Andrew Suckling, Chairman of REM, said: “This strategic investment provides REM exposure to some early stage exploration assets in an area which is prospective for lithium. The Pilbara region has rapidly grown and been developing several of high grade hard rock lithium deposits, supplying spodumene concentrate to the lithium carbonate processing plants in China. Once granted we look forward to hearing updates on the initial exploration programmes on these applications.”
London and New York listed Rare Earth Minerals Plc (AIM: REM, OTC: REMMY), has told DirectorsTalk that it has entered into a subscription agreement for approximately 15.5% (on an undiluted basis) of Macarthur Minerals Limited’s (TSX-V: MMS) Share Capital for a total consideration of CD$300,000. Macarthur has applied for ten prospective lithium exploration licenses covering 946km2 in the Pilgangoora district, the Eastern Pilbara, and the Mid-West region of Western Australia. A Map with the location of The Projects is available at:http://www.rareearthmineralsplc.com/files/9214/5822/8719/Mcarthur_License_applications.pdf.
Details of The Projects
The Eastern Pilbara applications were targeted based on a desktop review carried by CSA Global Pty Ltd (“CSA Global”) a leading geological, mining and management consulting company whom have substantial experience in the field of industrial minerals exploration, including for lithium.
The applications contain similar geological settings to the Wodgina Tin-Tantalum (Ta-Sn) and Pilgangoora Lithium-Tantalum (Li-Ta) pegmatite deposits, which host the lithium projects of Australian Securities Exchange listed companies, Pilbara Minerals Limited and Altura Mining Limited.
The broader Eastern Pilbara district has been the subject of extensive historical exploration for a range of minerals and is known to host many granitic pegmatites such as those hosting the Pilbara Minerals Limited and Altura Mining Limited lithium projects. The largest concentrations of lithium-containing minerals, such as spodumene are found in pegmatites. Due to its lithium content and abundance, spodumene is considered the most important lithium-bearing mineral.
Details of the Subscription Agreement
The subscription agreement is for 15,000,000 units (each, a “Unit”) at a price of CAD$0.02 per Unit (“Unit Price”) proceeds of CAD$300,000. The Unit Price is equal to the closing price of Macarthur’s TSX Venture Exchange listed shares on February 3, 2016, the date the Macarthur announced the brokered private placement and to Macarthur’s closing price on March 16, 2016.
Each Unit shall be comprised of one common share in the capital of Macarthur (each, a “Common Share”) and one whole warrant to acquire a Common Share (each, a “Warrant”) at an exercise price of CAD$0.05 per Common Share for a period of twelve months from the date of issuance.
The closing of the brokered private placement will occur after and subject to receipt of all necessary regulatory approvals including that of the TSX Venture Exchange and the approval by the Foreign Investment Review Board (“FIRB”) in Australia, if required.
The net proceeds from the Offering will be used for working capital and to further advance the development of lithium exploration licenses, which are under application, in the eastern Pilbara region of Western Australia. The securities issued pursuant to the Offering will be subject to a statutory 4 month plus one day hold period from the date of issuance.
