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 its risen 50% this week ..more the same..?

REM INCREASES STRATEGIC HOLDING IN BACANORA

Update - Yangibana Rare Earth Prospect

cheers skinny - loads more to come here

mitzy wont be this cheap for too long

http://moneyweek.com/right-side-lithium-miners-update/
gla

Good article there gibby I'm holding on for better times.

cheers mitzy - me too - will never be dull here!
atb

Bullish signal today hope for more tomorrow.

We should, not saying will, be seeing the sp rise after Bacanora list on AIM next Friday.

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%