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.

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

3ms - I had no idea ref your health - I am glad you are ok now - and yes agree with your comments

atvb

2517 gl George and thanks

Drinks all round gibby. :-))

Equity Placement

Rare Earth Minerals plc (AIM: REM) the rare earth minerals and metals projects investment company is pleased to announce that it has raised gross proceeds of £750,000 in a placing to investors of 150,000,000 new ordinary shares of 0.01p each in the capital of the Company ("Shares") at a placing price of 0.5 pence per Share (the "Placing Shares") together with a warrant for every two Placing Shares subscribed, each warrant entitling the holder to subscribe for one Share at a price of 0.5 pence per Share before 31 August 2014.

cheers dc - I hope you made something here too gl

Another 1.3b shares traded following the same yesterday. I thought about buying yesterday pm but didn't want to stop the sp in it's tracks, I'm not intending to buy so should be more to come. This was around 0.17p a few days ago, and that's why these co's are popular. GLA
2517

This has been a 15 bagger for me as bought in at .06,,,have got it in my SIPP so it's all looking good atm :)..will continue to hold for a while yet

2517 - sorry to hear that George but realise why - gl

sky - only 12 & a bit bagger for me so far but very happy - rem doing so well has held rrr back a bit for the moment as taking all the glory for now - but I don't mind as holding in both - rrr will be next imo (already 3 bagged from .3) gl and have a very good weekend

Increase in ownership of Mexico Lithium Project

Increase in ownership of the Mexico Lithium Project to 30%


Rare Earth Minerals (AIM: REM) has formally advised Bacanora Minerals Ltd ("Bacanora") that it is exercising its Option under the formal Joint Venture Agreement to move to 30% ownership of the Fleur-El Sauz Lithium Project in northern Mexico.

Under the formal Agreement, REM will now pay Bacanora US$500,000 and commit to spending US$1 million on further exploration and drilling expenses over the next 6 months.

REM still has a first right of refusal, under the agreement, to negotiate terms with Bacanora to increase its holding in the Joint Venture to 49.9%.

cheers skinny - I hope you did well here

Yes thanks - I can eat for the next month or two! :-)

Go on lol your the richest man on here. :-))