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Mining Capital
EPIC: REM
Market: AIM
52-week High/Low: 0.98p / 0.40p
Sector: General Mining - Rare Earth Minerals
Market Cap: 41.22M
Phone: +44 (0)20 7440 0647
Address: Suite 3B Princes House, 38 Jermyn Street, London SW1Y 6DN.
Website: www.rareearthmineralsplc.com

Rare Earth Minerals invests across the globe, principally in lithium mining projects. Its primary strategy is take significant economic stakes in upstream exploration and development assets within strategic metals. We identify assets that have strategic cost advantages that are not replicable, with the aim of achieving lower quartile production costs. The combination of this approach and seeking value opportunities allows us to identify projects capable of achieving high rates of return.

The board of REM board has a blend of mining, commodity investing, fund management and deal structuring knowledge and experience, that is supported by access to key marketing, political and industry contacts. These resources are leveraged not only in our investment decisions but also in continuing support of our investments, whether it be increasing market awareness of an asset, or advising on product mix or path to production. REM’s goal is to assist management to rapidly develop the project up the value curve and deliver excellent returns on its investments.
 
 

Rare Earth Minerals plc

www.rareearthmineralsplc.com

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Big picture - Why invest in Rare Earth Minerals plc

Rare Earth Minerals plc Snapshot

The Company’s investing policy, which was approved at a General Meeting on 29 November 2010, is to acquire a diverse portfolio of direct and indirect interests in exploration and producing rare earth minerals and/or other metals projects and assets (‘Investing Policy’). In light of the nature of the assets and projects that will be the focus of the Investing Policy, the Company will consider investment opportunities anywhere in the world.

The Directors have considerable investment experience, both in structuring and executing deals and in raising funds. Further details of the Directors’ expertise are set out on this website. The Directors will use this experience to identify and investigate investment opportunities, and to negotiate acquisitions. Wherever necessary, the Company will engage suitably qualified technical personnel to carry out specialist due diligence prior to making an acquisition or an investment. For the acquisitions that they expect the Company to make, the Directors may adopt earn-out structures with specific performance targets being set for the sellers of the businesses acquired and with suitable metrics applied.

The Company may invest by way of outright acquisition or by the acquisition of assets – including the intellectual property – of a relevant business, partnership or joint venture arrangement. Such investments may result in the Company acquiring the whole or part of a company or project (which, in the case of an investment in a company, may be private or listed on a stock exchange, and which may be pre-revenue), and such investments may constitute a minority stake in the company or project in question. The Company’s investments may take the form of equity, joint venture, debt, convertible documents, licence rights, or other financial instruments such as the Directors deem appropriate.

The Company may be both an active and a passive investor depending on the nature of the individual investments in its portfolio. Although the Company intends to be a long-term investor, the Directors will place no minimum or maximum limit on the length of time that any investment may be held.

There is no limit on the number of projects into which the Company may invest, or on the proportion of the Company’s gross assets that any investment may represent at any time, and the Company will consider possible opportunities anywhere in the world.

The Directors may offer new ordinary shares in the capital of the Company by way of consideration as well as cash, thereby helping to preserve the Company’s cash for working capital and as a reserve against unforeseen contingencies including, by way of example and without limit, delays in collecting accounts receivable, unexpected changes in the economic environment and unforeseen operational problems. The Company may, in appropriate circumstances, issue debt securities or otherwise borrow money to complete an investment. There are no borrowing limits in the Articles of Association of the Company. The Directors do not intend to acquire any cross-holdings in other corporate entities that have an interest in the ordinary shares.

Sonora Lithium

The Sonora Lithium Project consists of 10 concessions which confer rights for exploration, mining and production. all of which are located between 190 km northeast of Hermosillo, Mexico and 180km south of the USA-Mexico border. These concessions cover approximately 97 thousand hectares and target key areas of lithium enrichment. Rare Earth Minerals plc owns in total between 15.57% and 40.90% economic interest in these concessions.

As of April 2016 these areas contained and Indicated Mineral Resource estimated at 259 million tonnes (“Mt”) averaging 3,200 ppm Li for 4.5 Mt of Lithium Carbonate Equivalent ("LCE"), in addition to an Inferred Mineral Resource estimated at 160 Mt averaging 3,200 ppm Li for 2.7 Mt of LCE. A Pre-Feasibility Study (“PFS”) was completed in April 2016 which  estimated a project pre-tax IRR of 29%; NPV of US$776M, (at an 8% discount rate); and simple payback of five years, based on a flat US$6,000/t for battery grade lithium carbonate over the life of mine. 

The PFS has targeted initial production of 17,500 tonnes (t) of lithium carbonate (Li2CO3) per annum, expanding to 35,000 t of Li2CO3 per annum two years later. Once at this level this mine would represent one of the single largest sources of lithium compounds in the current market.

 The Sonora Lithium Project and Details of Rare Earth Minerals ("REM") ownership.

REM owns a direct interest of 19.12% of Bacanora.The Sonora Lithium Project is comprised of the following lithium properties:

·     La Ventana, La Ventana 1, and Megalit concessions, which are 100 per cent. owned by Minera Sonora Borax S.A. de C.V.("MSB"), a wholly-owned subsidiary of Bacanora; REM, through its direct interest of 19.12% of Bacanora, has an indirect interest in these concessions of 19.12%.

·     El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, which are held by Mexilit S.A. de C.V. ("Mexilit"). REM has a 30% direct interest in Mexalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.12% in Bacanora, has a total economic interest in Mexalit of 43.38%.

·     The Buenavista, and San Gabriel concessions, which are held by Megalit S.A de C.V ("Megalit"). REM has a 30% direct interest in Megalit through its Joint Venture with Bacanora, and when combined with REM's direct interest of 19.12% in Bacanora, has a total economic interest in Megalit of 43.38%.

For more information, click here

Clinovec Lithium/Tin Deposit

Cinovec is a historic tin mine, incorporating a significant undeveloped tin resource with by product potential including tungsten, lithium, rubidium, scandium, niobium and tantalum.

Cinovec is one of the largest undeveloped tin deposits in the world. Cinovec also hosts a partly overlapping hard rock lithium deposit.

The deposit appears amenable to bulk mining techniques and has had over 400,000 tonnes trial mined as a sub level open stope.

For more information, click here

Yangibana 

Ownership: 30%

REM has a 30% free carried interest to bankable feasibility study on the Yangibana Rare Earth Minerals Project, Australia

For more information, click here

For information on Greenland, click here

For information on Macarthur Minerals. click here

 

Andrew Suckling, Non-Executive Chairman

Mr Suckling is the founding principal and portfolio manager for Verulam, a discretionary commodity fund with focus on metals. Prior to founding Verulam, from 2000 - 2008, Mr. Suckling was a founding partner, research analyst and trader with Ospraie Management, LLC and its predecessor Fund with Tudor Investment Corporation. Mr. Suckling's 21 years' experience in the commodity industry began in 1994 as a Trader with London Metal Exchange Ring dealing member, Metallgesellschaft (MG). In that role, Mr. Suckling established a trading presence in China for MG setting up a representative office in Shanghai in 1997 -1998. Mr. Suckling is a graduate of Brasenose College, Oxford University earning a BA (Hons) in Modern History in 1993 and an MA in Modern History in 2000.


Donald Strang, Finance Director & Company Secretary

Mr Strang is a member of the Australian Institute of Chartered Accountants and has been in business over 20 years, holding senior financial and management positions in both publicly listed and private enterprises in Australia, Europe and Africa. Mr Strang has considerable corporate and international expertise and over the past decade has focussed on mining and exploration activities. He is currently the finance director of, Solo Oil plc and AfriAg plc , an executive director of Evocutis plc, and the executive chairman of Polemos plc, Doriemus plc and Stellar Resource plc


Kiran Morzaria, Director & Chief Executive Officer 

Mr. Morzaria holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School. He has extensive experience in the mineral resource industry working in both operational and management roles. He has extensive experience in the mineral resource industry working in both operational and management roles. Mr. Morzaria spent the first four years of his career in exploration, mining and civil engineering.  He then obtained his MBA and became the Finance Director of Vatukoula Gold Mines and was part of the team that acquired and re-commissioned operations. He has served as a director of a number of public companies in both an executive and non-executive capacity, he is a non-executive director of Bacanora Minerals Ltd and the finance director of UK Oil and Gas Investments Plc.


Adrian Fairbourn, Non-Executive Director

Mr Fairbourn began his career as an investment analyst before moving to build and manage the highly successful alternative fund-of-funds operation at the Bank of Bermuda, prior to the purchase of the bank by HSBC. For the four years up to 2007 he co-managed a multi-family office in London, responsible for hedge fund investments, direct investments and also asset-raising for co-investment opportunities. He has successfully assisted in over $1billion of structuring, capital and fundraising projects for several private companies and alternative funds. Since starting Exception Capital, Mr Fairbourn spent two years in Shanghai working on a number of company specific situations and helping lift out the Chinese Private Equity team from Temasek, the Singapore Government Sovereign Wealth Fund, into their own entity from where they raised $950m for their first fund. Now back in London, Mr Fairbourn is working on a number of opportunities as well as managing the family assets for a high net worth Italian family.

Significant Shareholders    
     
Ordinary shares of 0.01p each Number Percentage of capital
BARCLAYSHARE NOMINEES LIMITED 914,039,468 12.3%
HARGREAVES LANSDOWN (NOMINEES) LIMITED Des:15942 738,984,729 9.9%
HARGREAVES LANSDOWN (NOMINEES) LIMITED Des:VRA 487,744,760 6.5%
TD DIRECT INVESTING NOMINEES (EUROPE) LIMITED Des:SMKTNOMS 431,688,638 5.8%
HSDL NOMINEES LIMITED Des:MAXI 418,425,731 5.6%
HSDL NOMINEES LIMITED 418,287,252 5.6%
TD DIRECT INVESTING NOMINEES (EUROPE) LIMITED Des:SMKTISAS 360,568,583 4.8%
HARGREAVES LANSDOWN (NOMINEES) LIMITED Des:HLNOM 316,487,029 4.2%
HSBC CLIENT HOLDINGS NOMINEE (UK) LIMITED Des:731504 288,014,062 3.9%
FOREST NOMINEES LIMITED Des:GC1 281,326,000 3.8%
INVESTOR NOMINEES LIMITED Des:WRAP 234,964,736

3.1%

     
Total Significant Shareholders 4,890,530,988 65.5%

 

Rare Earth Minerals plc
Suite 3B Princes House,
38 Jermyn Street,
London,
SW1Y 6DN

T: 020 7440 0647
F: 020 7440 0641

Nominated Adviser and Nominated Broker

W. H. Ireland Limited

24 Martin Lane

London

EC4R 0DR

 

Registrars

Neville Registrars Limited

Neville House

18 Laurel Lane

Halesowen

West Midlands

B63 3DA

 

Bankers

Barclays Bank

1 Churchill Place

London

E14 5HP

 

Solicitors

Hill Dickinson

105 Jermyn Street

London

SW1Y 6EE

Auditors

Chapman Davis LLP

2 Chapel Court 

Borough High Street

London 

SE1 1HH

 

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