Rare Earth Minerals (LON:REM) has acquired 6.65% of one of the largest lithium deposits in Europe.
The holding in the Cinovec deposit in the Czech Republic will be acquired through a stake in European Metals Holdings, which has 100% of the exploration rights over the lithium/tin deposit. The cost is £200,000 through a placing of shares by Australia-listed European Metals.
Rare Earths said a recent resource update indicated the potential for Cinovec to be a very low cost source of lithium carbonate (LCE) with an inferred resource of 514.8Mt at 0.43% Li2O for 5.5Mt LCE.There is an additional exploration target of 350Mt-450Mt at 0.39-0.47% Li2O for 3.4Mt-5.3Mt.
Tin resources were an indicated 7.0Mt at 0.23% with a total tin resource of 167,000 tonnes.
David Lenigas, Rare Earth's chairman, said: "This investment is a strategic acquisition which provides REM exposure to a significant lithium deposit in the European Union. The project abuts Germany, one of the largest potential consumers of lithium in the EU.”