LONDON (Alliance News) - Rare Earth Minerals PLC Friday said its joint venture partner Bacanora Minerals Ltd has received approval from Canadian regulators for a GBP4.75 million equity raising through an initial public offering on the AIM market in London, meaning the companies will both have the money needed to accelerate the development of their lithium project.
Rare Earth Minerals has a 11.27% stake in Bacanora, after slowly increasing its stake in recent months. The two companies have a joint venture developing the Sonora lithium project in Mexico, and there has been a string of good news about the project this year.
Bacanora has approval from the TSX Venture Exchange to offer up to GBP4.75 million worth of shares at GBP0.33 pence a share in a listing on AIM. It is currently listed in Canada.
The proceeds will be used to cover the expenses associated with the AIM listing, for working capital, and to fund the preparation of a pre-feasibility study on Bacanora' Magdalena Borate project as well as for the work program to establish the economic potential of the Sonora Lithium project.
"Bacanora have now obtained approval from their Canadian regulatory authority to complete their financing at 33 pence per share to raise up to GBP4.75 million provided that they achieve their proposed listing on AIM by 24 August 2014," Rare Earth Minerals Chairman David Lenigas said in a statement.
"REM sees Bacanora's proposed listing on AIM as a significant step forward for the overall Sonora Lithium Project in Mexico, as both Bacanora and REM will have the necessary funding in place to progress the pace of development of Sonora," Lenigas added.
Rare Earth Minerals shares were up 3.9% at 0.925 pence Friday moening.