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.

Rare Earth Minerals - Update - listen here.

did i see that that crook lenigas is linked to this company
if so, no wonder it stinks

surprised that no one here follow them?
do you know something that I don't know?

Not sure how much involvement David Lenigas still has here, he will claim he hasn't any of course! With it's fingers in a few pies the prospects for REM are not bad, still a speculative share but with the various projects moving forward the sp may well follow, as it is doing today.

shame it got ignored today hod 0.98 now 0.91... when I posted (above) REM was around the 0.70 :-))

Rare Earth Minerals Plc Update on Macarthur Minerals

Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) is pleased to report that Macarthur Minerals ("Macarthur") in which REM owns a 15.5% shareholding, has announced that it has acquired a lithium Project in Nevada, USA. The full Macarthur announcement can be found at:
http://web.tmxmoney.com/article.phpnewsid=4701858674995706&qm_symbol=MMS

Macarthur Minerals Limited (TSX VENTURE: MMS) (the "Company" or "Macarthur Minerals") is pleased to announce that it has entered the United States lithium supply sector through an agreement to acquire the Stonewall Project in Nevada, which is prospective for lithium ("Stonewall Project"). The Stonewall Project covers an area of approximately 5,700 acres (23 km2) and the majority of a Salt Lake Playa in Nevada's Lida Valley Basin, the adjacent basin to the Clayton Valley Basin, which hosts the United States' only producing lithium mine. The Stonewall Project is considered essentially "drill ready" and a United States mineral exploration company is being engaged to undertake a shallow drilling program for due diligence purposes.

David Taplin, President, CEO and Director of Macarthur Minerals commented:
"Acquisition of the Stonewall Project located in Nevada is an exciting opportunity for Macarthur Minerals as its entry into the United States lithium supply market. The Stonewall Project is strategically located 306 kilometres from Tesla's Gigafactory in Nevada and is 48 kilometres from Albemarle's Silver Peak Lithium Mine, the only operating lithium mine in North America. The acquisition adds to Macarthur Minerals' extensive and highly prospective Western Australian 'hard rock' lithium exploration asset portfolio to give the Company a truly global lithium strategy."

Nice! :o)

Could well climb towards 2p again.

Harrycat thanks for the chart + info
I didn't bother b/c I thought wasn't worth a sno one follow -trade

I heard of REM on an USA forum ... got interested (and traded)
any way you all DYOR

kimoldfield 2p or £2 (?) confused

2p for now, £2 is too optimistic, though never say never! :o)

StockMarketWire.com
Rare Earth Minerals said Macarthur Minerals, in which it owns a 15.5% stake, has announced it has applied for an additional exploration licence in the Pilbara region of Western Australia.

Macarthur Minerals had applied for an additional exploration licence E45/4824, in the Pilbara region adjacent to its existing exploration licences E45/4708 and E45/4709, to extend the contiguous area to 367 square kilometres (90,687 acres).

The Company now has total tenement acreage under application in the Pilbara region of 1,449 square kilometres (358,055 acres), in addition to its Yalgoo, Edah Hill, Ravensthorpe, Sulphur Springs, Whim Creek interests in Western Australia and Nevada Stonewall interests in the United States of America.

Agreement to Acquire a Further Interest in Bacanora Minerals Ltd. and Corporate Update

merger rns just out - YUM!

gla

thought bacanora had kicked rem into touch
can't say i care much as won't go anywhere near anything tainted by lenigas

in contradiction of my previous post ......

i had a very interesting chat with a chap yesterday who was very knowledgeable indeed about this highly risky stock
notwithstanding the prior - i hope late - involvement with that crook david lenigas, lithium certainly has a very interesting and promising future
i believe REM has very significant holdings in the mines for this rare but very valuable commodity

overall, it may be worth buying a few and tucking them in the drawer for 2/3 years

Wow! Can I have some of whatever you are taking cynic?! :o) Undervalued stock at the moment but expect volatility until the lithium etc reaches the market. If it is still around in 2 years time, no reason why it shouldn't be, Tesla will be buying the processed lithium for sure.

why do you want "some of what i am taking"?
but yes, that elon musk connection is certainly part of the equation

Such a change of heart, oozing optimism on a gloomy Monday morning! Gimme some! :o)