Markets

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

Related Articles

Madagascar Oil shares suspended 17 Dec 2010
Internet talk of Falkland oil discovery ramps Desire 28 Oct 2010
Revealed: how Desire's advisers have cashed in 29 Oct 2010
Miners finish with flourish as FTSE 100 limps towards 201131 Dec 2010
Lenigas aims to mine rich seam in rare earths31 Dec 2010
Beware dreams of gushing Falklands oil after Desire's flop31 Dec 2010
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.

agreed - in fact rem will (should) rise in the lead up to it - around say 2p mark or more - blue day
gla

movin;

yeeeeeeeeeeeeeeeeeeeehaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

I think you left one e out gibby! :o)

Should have some news from Tesla next week.

Certainly moving up again today without any news.

Bacanora listing on AIM tomorrow seems to exciting punters.

yep rem hasn't stopped bagging yet - plenty in the tank here
gla

Comment in todays Telegraph.

Yes, but I'm not sure if it's a good one...


http://www.telegraph.co.uk/finance/newsbysector/industry/mining/10988425/Bacanora-Minerals-a-miner-youve-never-heard-of-floated-in-London-and-heres-why-should-you-care.html

No shortage of mugs on AIM.


Bacanora's choice of London also signifies a shift in mining investments away from typical Canadian markets and into Europe.

Mr Orr-Erwing explained: “One of the reasons why we are coming to the London market is that for two days after we announced we had produced battery-grade Lithium from our pilot plant not a single share on the Canadian market was bought or sold.

This was mind-blowing. So we thought it's really not worth hanging around here, and decided to list on AIM, and it will dual-list for the time being.

Plenty of press coverage this weekend.

The trouble is it's always after the event....always the same....any good share tips ?...only ones you already know about and established values !....

REM reports holding in Bacanora Minerals at 11.68%

The world may need more lithium!

News from Tesla/Panasonic any day now.

Tesla report on Thursday.

A snippet - All In? Tesla, Panasonic Could Announce Nevada Gigafactory Deal This Week

Tesla update Thursday might provide a clue.

Tesla and Panasonic Agree to Build Factory in U.S.

REM increases strategic holding in Bacanora

REM increases strategic holding in Bacanora Minerals to 11.94%

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 11.94% from the previously reported 11.68% through further on-market purchases totalling £155,375 from 29 July to 31 July 2014.

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 Megalit Joint Venture, results in a total economic interest in Fleur- El Sauz of approximately 38.36% and a total economic interest in Megalit of approximately 20.74%.

Initial TREO results from Greenland.

Highlights:

· Initial assay results starting to be received from REE target in Greenland.
· 4 of 10 samples exceeded 2,000 ppm Total Rare Earth Oxides ('TREO') with the highest at 2,887 ppm TREO.
· TREO grades similar to the proximal Tanbreez deposit.
· A total of 361 samples collected to date are currently being analysed for REE's precious metals.
· Exploration on REM's Greenland Licences is continuing.

Yangibana Update - Maiden JORC resource expected.

Rare Earth Minerals (AIM: REM) advises that the securities of Hastings Rare Metals Limited ("Hastings"), REM's 70% joint venture partner in the Yangibana Rare Earth Element Project in Western Australia, are in a Trading Halt on the Australian Stock Exchange until the earlier of an announcement to the market concerning a maiden JORC resource on the Yangibana Project or Wednesday 6 August 2014.

Details of Ownership:

On the 1 December 2012 REM announced that it had acquired a 30% free carried interest to Bankable Feasibility Study ("BFS") of the Yangibana Rare Earth Project. Therefore the exploration costs until the commencement of the BFS are borne solely by Hastings Rare Metals Limited (70% owners and operator).