AIM-listed Rare Earth Minerals(REM) has executed formal agreements with Toronto Stock Exchange-listed Bacanora Minerals, enabling REM certain rights to participate in drilling and project evaluation of the El Sauz and Fleur Lithium concessions in northern Mexico.
Under the terms of the agreement, REM reported that it would earn an initial 10% interest in Bacanora's 100%-owned subsidiary that would hold the concessions by making an upfront cash payment of $250,000 and providing $500,000 to the company in two installments.
REM reported that a diamond drill under contract from Godbe Drilling of Colorado, USA, had arrived at the concessions. It said that the drilling programme would be estimated to take approximately 80 days with final results of drill core analyses expected in late August.
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David Lenigas, Chairman of Rare Earth Minerals, commented: "The company is very pleased to be quickly advancing this project with the first drill testing. If this test is successful it will then provide the geological evidence necessary to demonstrate that the basin that hosts the lithium-rich clays extends for at least 7.0 kilometres in a northwesterly direction and onto Bacanora's adjoining La Ventana concession, leading to a far better understanding of the basin and the scale of the resource on the project areas."
REM's share price was down 3.85% to 0.06p at 12:02pm on Thursday.
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