Business
Bacanora Acquires 50% Interest in Lithium Asset
Bacanora Acquires 50% Interest in Lithium Asset.
About this update from Cadence Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 4218X Rare Earth Minerals PLC 21 February 2017 \n\nRare Earth Minerals Plc\n \n(\"Rare Earth Minerals\", \"REM\" or \"the Company\")\n \nBacanora Acquires 50% Interest in Strategic German Lithium Asset\n \nRare Earth Minerals Plc (AIM/ISDX: REM; OTC: REMMY)) is pleased to report that Bacanora Minerals Ltd (\"Bacanora\"), in which REM has a 19.12% holding, has entered into a definitive agreement (dated 17 February 2017) to acquire a 50% interest in, and joint operational control of, the Zinnwald Lithium Project ('Zinnwald' or 'the Project') in southern Saxony, Germany from SolarWorld AG ('SolarWorld'), the largest solar panel producer in Europe. This is in line with management's vision to become a global lithium operator focused on projects with significant value accretion potential and defined markets at both the product and geographic levels. \n \nThe full Bacanora announcement can be found at: http://ir.euroinvestor.com/Tools/newsArticleHTML.aspx?solutionID=2482&customerKey=bacanoraminerals&storyID=13536748&language=en .\n \nHighlights:\n \n· Zinnwald, which reportedly produced lithium carbonate in the 1950s, is located in a granite hosted Sn/W/Li belt that has been mined historically for tin, tungsten and lithium \n \n· The Project benefits from excellent access to the rapidly growing market for lithium in Germany which is being driven by the automotive, renewable energy storage and chemicals industries\n \n· Geographical location of the Project provides potential access to new markets, which diversifies risk and complements potential target markets for the Company's Sonora project in Mexico where a Feasibility Study is on track for completion in 2017\n \n· Bacanora will earn 50% of the project in return for a cash consideration of EUR5 million and an undertaking to contribute EUR5 million towards the cost of completing a Feasibility Study on the Project, which is anticipated to take approximately 18-24 months to complete\n \n· Access to the significant lithium technical expertise developed by SolarWorld over the past ten years in the renewable energy industry\n \n· Option to acquire the o...