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

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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.

Well done sh.

More good news released this morning... now waiting on the estimates to be released within sereral weeks.... onwards and upwards!
Rare Earth minerals plc

("Rare Earth Minerals", "REM" or "the Company")


Final Drill Results Mexico Lithium Project



Rare Earth Minerals (AIM: REM) has received final analytical results for drill core from its Fleur-El Sauz Lithium Project in northern Mexico. The results provide continued firm evidence that Fleur-El Sauz has potential to be part of a major high grade lithium discovery.



In addition to the assay results shown below, the Fleur - El Sauz deposits identified to date remain open on strike and at depth.



Highlights:



· REM intersects significant lithium values in both Upper Clay and Lower Clay Units in all drill holes of the first phase programme conducted at its Fleur - El Sauz Lithium Project.



· All ten diamond drill holes, ES-01 to ES-10, show a 4 kilometre strike length for the lithium clay units on the concessions.



· Intervals with significant lithium (greater than 1,000 ppm Li) average 18.27 metres and 27.62 metres in true thickness for the Upper and Lower Clay Units, respectively.



· Preparation of a maiden lithium resource estimate is now underway, with results from this study expected within the next several weeks.





David Lenigas, the Company's Chairman commented:



"REM is pleased to report that the final holes confirm the extension of mineralisation through the Fleur - El Sauz licences and increase the potential of outlining a new and substantial lithium deposit.



"The total known world resource of lithium metal is estimated to be only just over 30 million tonnes, with total world annual production expected to rise from the current 150,000 tonnes of Lithium Carbonate Equivalent ("LCE") to 300,000 tonnes by 2020. The majority of current world production is based on brine pumping from Salars in South America, and deposits in China and Australia.



"Lithium is an important metal in today's quest for energy and energy storage solutions, for example in the fast-growing electric car market. To be part of this discovery is a very exciting prospect for the Company. The substantial amount of lithium-bearing clays present also represents an interesting opportunity for supply to the oil industry since these clays are becoming increasingly necessary for HTHP drilling muds now being used in deep oil and gas wells and for fracking.



"We are very pleased with the lithium grades obtained to date and widths of intercepts of the clay units in the holes. These results continue to demonstrate the persistence of the lithium-bearing clay units onto the joint venture lands and highlight the potential for a significant lithium resource to be outlined. The results from drilling are consistent with the mineralisation in the adjoining La Ventana deposit to the north-west. REM's management expects to provide an initial resource estimate within the next several weeks."



"REM will have 14 days after receipt of the initial resource estimate from Bacanora Minerals Ltd. ("Bacanora") to give final notice to increase its holding from 10% to 30% of the Fleur-El Sauz Joint Venture, under existing agreements with Bacanora."

Highlights:

· REM intersects significant lithium values in both Upper Clay and Lower Clay Units in all drill holes of the first phase programme conducted at its Fleur - El Sauz Lithium Project.

· All ten diamond drill holes, ES-01 to ES-10, show a 4 kilometre strike length for the lithium clay units on the concessions.

· Intervals with significant lithium (greater than 1,000 ppm Li) average 18.27 metres and 27.62 metres in true thickness for the Upper and Lower Clay Units, respectively.

· Preparation of a maiden lithium resource estimate is now underway, with results from this study expected within the next several weeks.

SP reacting nicely this morning

SP still looking strong....

fantastic day

atb

On the cusp of a golden cross - although now quite a gap!

1.2B shares traded, fantastic rise. I've only looked at REM today so not in, but well done gibby, skyhigh and co.
2517

Well done to all in here. :-))

Yes, well done chaps.

Well done you folks out there who had the courage to invest - I didn't think anyone had any time for David Lenigas however some must have faith and hope they keep going up for you all.

keeeeeep ramping!!

Who is ramping? - not I - I just made a comment and I really mean well done those who have had the courage to invest. Final comment - over the years not many on this site would have had anything to do with anything David Lenigas was associated with so what has changed? Amen. I am not a ramper, just a thicko who used to enjoy making a few pounds here and there on the quiet until things - economy etc., went tits up. Me as well as it seems these days but at least they are still on my chest. Good night. Why do people always have to be cynical? No need.

Possibly not too late to tuck a few in your portfolio 3m. 'Finger in many pies Lenigas' might be on to a seriously nice winner here! Still speculative I assume, but one has to speculate to accumulate I am told!

Next Wed. a deal from Halifax share dealing so may have a little look between 12-2.00 p.m. me thinks. Speculate to accumulate being the operative work. Who knows. You never told me Kim how your son got on in the tank he courageously dived in for charity. Hope all is well.

Good luck with that 3m!

It was my son-in-law who threw himself into the tank at the mercy of several sharks and various other fishy things! Despite looking somewhat nervous to begin with, he actually enjoyed the experience and would possible do it again! Between the dive and an evening of music and entertainment in Liverpool he, with his family, raised over £4,000 for Breakthrough Breast Cancer, a very worthy cause which I will shamelessly promote here:-
http://www.breakthrough.org.uk

top sliced some profits yesterday...rude not to...bought some more COMS with the proceeds but still have a sizable holding in REM....all looking good.. exciting times!

thanks dc, 3ms, doodle - another good day :-0

gla

Let us hope so. Well done to kims son-in-law and family. Being a recent heart attack patient and having possible/probable other problems, admiration to all who give their time and courage helping others.

if interested rrr is due an imminent rns which will have similar affect to rem

I know rrr isn't everyones idea of an ideal share but news is imminent the Greenland deal (& others) is proceeding according to mr bell by the end of august - expect 50 to 200% rise at rrr shortly

gla