VANCOUVER (miningweekly.com) – Aim-listed Rare Earth Mineral (REM) has agreed to raise its stake in Aim- and TSX-V-listed lithium and borates company Bacanora Minerals to 19.8% through an ‘on-market’ transaction valued at £4.5-million.
The transaction is expected to close before month-end.
REM advised that it holds a 30% joint venture (JV) interest in a series of concessions, which are together known as the Sonora lithium project. REM advised that, by combining its equity stake in Bacanora and its JV interests, it has a 19.8% indirect stake in the La Ventana, La Ventana 1 and Megalit concessions.
It has an indirect 43.9% interest in the Mexalit subsidiary, which holds the El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions, and it has 43.9% of the Megalit subsidiary, which holds the Buenavista and San Gabriel concessions.
REM stated that it had met the conditions for a previously announced $15-million convertible loan. The company said it will announce the full completion of the fund-raise in due course. So far, $6.5-million cash has been released to the company under the loan arrangement, REM noted.