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Rare Earth Min's brings in £3.5mln for more lithium buys

Rare Earth Minerals is hunting for further lithium acquisitions and has raised around £3.55mln in a placing to further the cause.
Rare Earth Min's brings in £3.5mln for more lithium buys
Lithium batteries are used to make electric cars....

Rare Earth Minerals (LON:REM) is hunting for further lithium acquisitions and has raised around £3.55mln in a placing to further the cause.

It placed around 45.6mln shares at 0.55 pence each mainly with US institutions. That's a 16% discount to Friday's closing price of 0.655p.

Each two new shares has one warrant attached enabling the bearer to buy one new share at 0.8 pence for two years from March 11, 2016.

REM's chairman Andrew Suckling noted: "Amid a very challenging environment for financing junior mining companies I am pleased to announce the capital raising today.

"The global lithium sector is a very exciting place to be at the moment, and REM continues to support new large lithium projects along the development curve, such as the Sonora Lithium Project in Mexico and the Cinovec Lithium Project in the Czech Republic.

"With the well-known expansion of the lithium battery manufacturing sector over the coming years, the major global banks and their analysts believe that overall lithium demand could more than double form present levels through to 2025.

"However even with recent announcements of planned increases in lithium production from the incumbent producers, we do not believe that these changes in capacity will be sufficient to satisfy the anticipated demand."

REM shares eased around 12% on the day to 0.575p.

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