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Rare Earth Minerals' 333pc rise after name change puts Aim under fresh scrutiny
What's in a name? About 10m, according to investors in Aim-listed Rare Earth Minerals Plc, whose share price rose 66pc yesterday.

Rare Earth Minerals' new website can still be found at www.zestmusic.com By Rowena Mason, Energy Correspondent 6:00AM GMT 31 Dec 2010
18 Comments
The company, which does not yet own any rare earth minerals or licences to mine them, was a loss-making music business called Zest until eight days ago.

It has not revealed how it plans to acquire any of the minerals on which China has a near monopoly. Nor has it disclosed the countries where it is targeting acquisitions with just 630,000 of cash in the bank.

However, since it proposed the name change on November 12, its share price has more than quadrupled from 0.35p, valuing it at 3.1m, to 1.52p, valuing it at 13.5m.

The rise is likely to raise further questions about the London Stock Exchange's governance of the AIM market - three years on since Roel Campos, an SEC commissioner, described the junior market as a "like a casino".

It has been under renewed scrutiny since Desire Petroleum's wild share spikes earlier this month. A spokesman for AIM declined to comment on whether the regulatory team is looking into Rare Earth Minerals

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One broker said: "It is penny stock madness, a herd mentality, though I'm not sure what they're trying to cash in on. It is just like a type of dotcom boom situation."

At the height of the dotcom boom, a string of cash shells - companies with a stock market quote but no actual business - listed on AIM. The value collapsed when the bubble burst, prompting the LSE to change its rules.

TD Waterhouse, the retail broker, said Rare Earth Minerals was its most traded stock yesterday, with the most buy orders and fourth most sell orders. "It's the first time I've ever seen it appear in the top ten," a spokesman said.

More than 143m shares changed hands, despite no new publicly available information.

The only announcement the company has made recently has been the award of 98m share options to "directors, staff , consultants and advisors" at 0.5p, redeemable in ten years.

The company's shares also rose sharply in January, when it appointed David Lenigas, a veteran of the world of penny stocks, as a non-executive. He is one of only two board members at Rare Earth Minerals and disclosed he was a director of 94 other companies including Solo Oil, Vatulouka Gold Mines and LonZim.

Last year, a study by Manchester Business School found AIM companies were no more likely to fail than those on other markets. However, they had more chance of survival if older, bigger, had a greater free float and a reputable nominated advisor.

Rare Earth Minerals was unavailable for comment.

LISTEN: Kiran Morzaria, CEO of Rare Earth Minerals, discusses the recent £6.4 million conditional placing

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Sonora Lithium Project - Update

Rare Earth Mineral Plc (AIM: REM) is pleased to announce Bacanora Minerals Limited ("Bacanora") has reported significant lithium results from 5 recently completed holes drilled into the lower clay unit on the La Ventana concession (the "Concession") in northern Mexico. The Bacanora news release is shown in full below.

The La Ventana Concession is owned 100% by Bacanora and is the north eastern extension of the Fleur-El Sauz lithium resource. REM has increased its shareholding in Bacanora to 5.47% after additional on market share purchases costing £80,000. This interest, when aggregated with REM's 30% direct interest in the Fleur- El Sauz Joint Venture, results in a total economic interest in the Fleur- El Sauz Lithium Joint Venture in northern Mexico with Bacanora of approximately 33.8%.

The 5 holes were drilled in order to upgrade the lithium resource in the up-dip section of the lower clay unit on the Concession. Within the 3.5 kilometre exposure of clays on the Concession, a strike length of 2.4 kilometres of the lower clay unit was tested during the recent program. Within the area drilled, the lower clay unit ranges from 16.92 to 26.21 metres in intercept length, averaging 19.57 metres (18.4 m estimated true thickness1). The weighted average of lithium values in samples taken across the intercepts range from 1,377 to 5,809 ppm Li (0.73 to 3.09% LCE2).

Final Results

A Transformational Year

The last financial year has been a transformational one for Rare Earth Minerals Plc ("REM") following our significant investment in the Fleur and El Sauz Lithium Project in northern Mexico - in which we have built a 33.8% economic interest. It is one of the new more significant lithium discoveries in the world in recent years. As at today's date, and as we embark on a continued growth phase for the Company, we are in the strongest financial position in the Company's recent history with cash and assets held for resale at our disposal of approximately £8 million.

Successful First Phase of Drilling at Lithium Project

Our joint venture with Bacanora Minerals Limited of Canada ("Bacanora") has so far successfully delineated 1.48 million tonnes of Lithium Carbonate from the first phase of drilling from clay deposits on the concessions. REM is optimistic of significant increases in this resource once the results are available from the completed second phase of drilling.

Increased Stake in Lithium Joint Venture Partner in Mexico

Not only has REM's management been working tirelessly with Bacanora on the Fleur and El Sauz concessions, but we have also increased our footprint in the Sonora Province by acquiring 5.45% of the shares in Bacanora. We have also signed the important second joint venture with our partner on the surrounding 200,000 acre Megalit concession, where we see potential for significantly increasing drill-defined lithium resources this year.

Activity and Updates Expected in the Coming Months

Over the past twelve months, we have published more than twenty updates or drilling reports on our Mexican project. We now look forward in 2014 to the Sonora Lithium Project, of which the Fleur and El Sauz concessions comprise the bulk of the identified lithium resources, gaining international recognition as a potential, meaningful supplier to the world lithium market. This will be aided by the publication of upgraded lithium resources, detailed metallurgical analyses and publication for the first time of the Project's potential economics.

Pursuing Our Stated Strategy

To reflect the potential of the Sonora Lithium Project, REM intends to continue with its stated strategy of increasing its holdings in both Bacanora and the Project itself.

We also expect to maintain the Company's efforts in both Greenland and Australia where we have important exploration targets.

Strong Long-Term Outlook

Your board believes that the long-term outlook for the Company is strong, particularly in light of the recent world focus on lithium demand which was highlighted by Tesla Motors' announcement of plans to build a US$5 billion Lithium Ion battery "gigafactory" in one the southern states of the USA in partnership with Panasonic.

Your board is, of course, duty bound to ensure that each set of drill results on our lithium project reflects the factual state of play at each reporting point. Beyond this, your board wishes to inform shareholders that it is very excited about the project's potential to eventually play a significant role in the global market for the supply of lithium. The board believes unequivocally that this project is of exceptional quality.

I would like to take this opportunity on behalf of the board to sincerely thank our staff, consultants and joint venture partners for their dedication this year and to thank our invested shareholders for their continued support.

Update on the Sonora Lithium Project, Mexico

Rare Earth Minerals Plc (LSE AIM: REM)) announces that further to the announcement on 5 December 2013, the definitive joint venture agreement with Bacanora Minerals Limited ("Bacanora") on the 94,814 hectare Megalit Concession that surrounds the Sonora Lithium Project in northern Mexico has now been signed. A new 3,000 metre drilling programme will commence on the Project in the coming weeks with half the metres designed to upgrade the Lithium resources from the inferred resource category to the indicated resource category and increase the resource, and half designed to test new Lithium targets along strike..

Highlights:

· The concessions held under joint venture interests in the Mexican Sonora Lithium Project have now formally increased to 100,140 hectares (247,451 acres) with the signing of the Megalit joint venture.

· A 1,500 metre drill program for the Penasco Lithium Prospect on the Megalit concession.

· A new 1,500 metre Stage 3 drill program will be initiated on the Fleur and El Sauz concessions with the objective of upgrading the lithium resource from the inferred resource category to the indicated resource category.

director buying today

LISTEN: Rare Earth Minerals (REM) - Company update

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Acceleration of ownership of Mexican Lithium JV

Rare Earth Minerals Plc (LSE AIM: REM)) announces that it has today formally advised its joint venture partner Bacanora Minerals Limited ("Bacanora") that the Company has, with immediate effect, elected to exercise its option to go to an immediate 10% direct registered interest in the San Gabriel, Buena Vista and the large 94,814 hectare Megalit Concessions ("Megalit Joint Venture") which surround the Sonora Lithium Project in northern Mexico, as announced on the 13 March 2014.

is it good news or bad. please can somebody explain

Battery Grade Lithium Carbonate Produced from Clays at the Sonora Lithium Project

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to announce that the independent third party, Metallurgical Division of Inspectorate Exploration and Mining Services Ltd ("Inspectorate"), has demonstrated and verified that our joint venture partner, Bacanora Minerals Ltd ("Bacanora"), is able to produce battery grade lithium carbonate (99.5%) from the lithium bearing clays on the Sonora Lithium Project in northern Mexico. The full news release from Bacanora is shown below.

Battery grade lithium carbonate is the premium lithium product employed by the battery industry in the production of lithium ion batteries, which are used in applications from small consumer and industrial appliances to electric vehicles and large stationary energy storage facilities for electric utilities.

Exploration to Commence in Greenland

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to announce a significant development on its 853 km2 concession package in south-west Greenland (the "Licences") with an upcoming exploration program. The exploration is to be assisted by Greenland Minerals and Energy Ltd (GMEL, ASX:GGG); a leading operator in Greenland's emerging minerals industry. The exploration program is focussed on REM's four licenses, which flank GMEL's exploration licenses that host the Kvanefjeld rare earth-uranium deposit, one of the largest rare earth deposits in the world.

Kvanefjeld has reported JORC compliant resources of 956 Mt containing 575 Mlbs U3O8, 10.33 Mt Total Rare Earth Oxides ("TREO"), 2.25 Mt zinc, with TREOs including 0.37 Mt of heavy REO and 0.84 Mt yttrium oxide. Kvanefjeld is currently undergoing a definitive feasibility study and permitting for the mine is expected to start towards the end of 2014. GMEL recently announced an MOU with China Non‐Ferrous Metal Industry's Foreign Engineering and Construction Co. Ltd. (NFC) for both parties to co-operate in aligning the rare earth concentrates from GMEL's Kvanefjeld Project, with NFC's substantial rare earth separation experience and capacity, to create a powerful force in global rare earth supply.

Western Lithium Demonstration Plant

Western Lithium's Demonstration Plant to Show Lithium Extraction From Its Nevada Deposit

Rare Earth Mineral Plc (AIM: REM) is pleased to announce that Western Lithium USA Corporation ("Western Lithium"), in which REM holds an approximate 2.2% interest, has announced that its lithium carbonate demonstration plant is expected to be operation in the fourth quarter of 2014.

The purpose of the demonstration plant is to produce lithium carbonate and byproduct samples on pilot scale equipment for strategic investors and potential off-take partners to witness, and to complete a Feasibility Study showing the commercial viability of the project using Western Lithium's patented technology, in order to attract engineering and construction capital.

Based on its NI 43-101 Prefeasibility Study, the Project is forecast to have a comparably low first-quartile cost structure against new and incumbent lithium producers, and to generate a pre-tax net present value of US$552 million at a discount rate of 8% (see SEDAR filing dated January 27, 2012).

The Western Lithium news release is shown in full below.

David Lenigas, the Company's Chairman commented:

""REM is pleased with its investment in Western Lithium and the significant progress that Western Lithium have made over the past few months.

Their Kings Valley Project has many similarities to REM's Sonora Lithium Project and their technical expertise on clay lithium deposits all goes well for the potential future viability of Mexico.

We are expecting updates on the completed Stage 3 drilling on Fleur and El Sauz in Mexico and the new drilling programme on the Megalit JV drilling soon."

- Ends -

Drilling to Commence on Yangibana Rare Earth Prospect, Western Australia

Test Results from El Cajon Deposit, Sonora, Mexico

Update on the Sonora Lithium Project, Mexico

Highlights:

· Drilling and Exploration:

o El Sauz - Fleur Joint Venture:

§ Stage 3 drill program was recently completed on the El Sauz - Fleur concessions; and

§ Mapping and prospecting have discovered new clay exposures on the Fleur concession.
o Megalit Joint Venture:

§ Diamond drilling has commenced on the Penasco lithium clay prospect on the Megalit concession;

§ Mapping and prospecting have discovered new clay exposures on the Megalit concession; and

§ Trenching of lithium clay surface showings on the Buenavista concession will be initiated shortly as a part of the exploration programme on Megalit.



· Engineering and Pilot Plant:

§ After achieving lithium carbonate product with over 99.5% purity, engineering design work has been commissioned to scope and design a lithium carbonate plant with the capacity of 35,000 - 50,000 tones per year of lithium carbonate;

§ Pilot plant continues to produce lithium carbonate samples for potential buyers; and

§ Test work on the clay units from La Ventana and Sauz-Fleur areas was conducted in order to determine suitability for use in drilling mud.

REM increases strategic holding in Bacanora Minerals to 8.59%

Rare Earth Minerals (AIM: REM) announces that it has now increased its shareholding in its joint venture partner in the Sonora Lithium Project in Mexico, Bacanora Minerals Limited ("Bacanora"), to 8.59% from the previously reported 6.06% through further on-market purchases totalling £532,000.

This interest, when aggregated with REM's 30% direct interest in the Fleur- El Sauz Lithium Joint Venture and the 10% direct interest in the 94,000 hectare Megalit Joint Venture, results in a total economic interest in Fleur- El Sauz of approximately 36% and a total economic interest in Megalit of approximately 17.7%.

REM adding more shares to their pile.


Rare Earth Minerals (AIM: REM) announces that it has now increased its shareholding in its joint venture partner in the Sonora Lithium Project in Mexico, Bacanora Minerals Limited ("Bacanora"), to 9.4% from the previously reported 8.6% through further on-market purchases totalling £165,000

This interest, when aggregated with REM's 30% direct interest in the Fleur- El Sauz Lithium Joint Venture and the 10% direct interest in the 94,000 hectare Megalit Joint Venture, results in a total economic interest in Fleur- El Sauz of approximately 36.6% and a total economic interest in Megalit of approximately 18.5%.

Bacanora shares have been rising steadily over the last few days, that's more than can be said of REM!

up 14% today.

Increase in holding in Bacanora Minerals to 10.18%

REM increases strategic holding in Bacanora Minerals to 10.18%


Rare Earth Minerals (AIM: REM) announces that it has now increased its shareholding in its joint venture partner in the Sonora Lithium Project in Mexico, Bacanora Minerals Limited ("Bacanora"), to 10.18% from the previously reported 9.4% through further on-market purchases totalling £203,000.

This interest, when aggregated with REM's 30% direct interest in the Fleur- El Sauz Lithium Joint Venture and the 10% direct interest in the 94,000 hectare Megalit Joint Venture, results in a total economic interest in Fleur- El Sauz of approximately 37.12% and a total economic interest in Megalit of approximately 19.16%.

David Lenigas, The Company's Chairman, commented:

"We continue to steadily increase our strategic shareholding in Bacanora Minerals, as we seek to increase REM's exposure to the Sonora Lithium Project in Mexico.

The 10% shareholding is an important threshold in Canada, where Bacanora is listed, and as such REM will now be required to file and release an Early Warning Report on Bacanora's Canada Exchange."

- Ends -

REM Fully Closes YAGM Equity Swap.

Rare Earth Minerals (AIM: REM) is pleased to announce that it has completed the full Equity Swap Agreement with YA Global Master SPV, Ltd. ("YAGM"), which has now provided a total of £3,017,495 in cash funding from the 17 June 2013 until yesterday without issuing any further equity in the Company.

David Lenigas, the Company's Chairman commented:

"This YAGM Equity Swap has proved very successful for REM, having provided more than tenfold the original £300,000 funding envisaged and enabled REM to farm-in to the exciting Sonora Lithium Project in Mexico and pay for an extensive exploration and assessment programme, which continues today."


YAGM Equity Swap:

On the 17 June 2013, REM announced that it had entered into a £300,000 Placing Agreement and separately a £150,000 Equity Swap Agreement with YAGM. Under the Equity Swap Agreement, REM was to receive an additional £12,500 per month for a 12 month period from September 2013, or more per month dependent on the future price performance of the Company's ordinary shares ("Shares"). Under the 17 June Agreement, YAGM could elect to accelerate the payments due to REM under certain circumstances.


The recent share price performance of REM has led to accelerated payments under the Equity Swap Agreement, resulting in the complete closing of the Equity Swap. REM's total cash payments resulting from the Equity Swap now total £3,017,495.

- Ends -

Up 15% today.

finally pushing higher.