Share Name Share Symbol Market Type Share ISIN Share Description
Rare Earth Min LSE:REM London Ordinary Share GB00B067JC96 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  +0.005p +1.00% 0.505p 0.48p 0.53p 0.505p 0.49p 0.50p 13,787,854.00 16:14:46
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 0.0 -3.3 -0.1 - 38.52

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Date Time Title Posts
05/12/201608:29REM (Rare Earth Minerals) **** Lithium Electric Cars ****1,974.00
03/12/201611:35Rare Earth Minerals 28,896.00
25/11/201607:46LENIGAS STOCKS ARE ALL CRASHING...HAVE WE ALL BEEN CONNED?12.00
11/8/201609:58!!! Parliamentary Petition !!!-
06/8/201608:30REM 0.82p to 0.4p in 201666.00

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Rare Earth Min (REM) Top Chat Posts

DateSubject
06/12/2016
08:20
Rare Earth Min Daily Update: Rare Earth Min is listed in the Mining sector of the London Stock Exchange with ticker REM. The last closing price for Rare Earth Min was 0.50p.
Rare Earth Min has a 4 week average price of 0.53p and a 12 week average price of 0.62p.
The 1 year high share price is 0.98p while the 1 year low share price is currently 0.41p.
There are currently 7,626,890,669 shares in issue and the average daily traded volume is 14,073,780 shares. The market capitalisation of Rare Earth Min is £38,515,797.88.
02/12/2016
17:24
rossowheels: rwauu: All they do is buy into junior miners who need capital to explore and the target company benefits from REM's interest in terms of generating cash and a higher profile which results in a higher share price for the target and a lower one for REM. Its clear that anyone buying REM today is likely to see significant future dilution to pay for operational costs and further investments which can only keep the share price down. When are we going to see some jam? I have to hand it to REM for coming up with numerous ways to obtain cash. The current loan to shares deal is great but not for the shareholders IMO.
04/8/2016
09:59
loganair: In the last 5 years, 3 times REM share price has gone above 1p and each time fallen back to below 1/2p. I can see of no good reason why this will not happen this time round.
01/8/2016
10:52
nickg2: Typical REM share price movement. Rushes up, people buy, slowly drifts back down, people stuck holding. Placing to follow.
05/5/2016
13:30
fqr714bhp: Noirua: it is a big shame it does not reflect REM share price. When will this be back over 1p?????????
11/1/2016
13:04
cautoussid: good to see so many posting on rem , like to see this interest at share ,especially when good news is released at a share as seen in the past how fast rem share price has moved up , makes it more risky for shorters ,also if shorters look how tedt energy has moved up today ,hoping may not be to long until rem has news that may see this share price move up , I would not be willing to risk shorting rem ,each to their own investing decisions
20/11/2015
08:50
datait: djfrankie2 20 Nov'15 - 00:55 - 27367 of 27390 1 0 FROM WINNIFRETHS SHARE PROPHETS With a hat tip to reader Rudyard, I now lay out the bear case for Rare Earth Minerals (REM), another David “Green Hair Services” Lenigas AIM Casino counter that is monumentally overvalued. The fat aussie share ramper Jabba The Hutt insists he has no need to issue shares. The maths suggests he has to. The shares should fall by 75%. The relationship between big Dave's Rare Earth Minerals and dual-listed Bacanora Minerals (BCN) has always been close. Bacanora and the Sonora lithium play is the biggest component of the REM portfolio and thus it's NAV. In return, Rare Earth continues to support the Bacanora share price by buying more shares on any Bacanora weakness. This is does by raising cash from what it euphemistically calls "investing activities" in the Interims but in reality have been share placings (£2.5 million to Standard Life, an equity swap (i.e. drawn out placing) with Yorkville In the H1 2015 interims Rare declared net assets of £21.79 million. Of this amount £12.74 million represented the market value of its investments at the period end (i.e. the value of the shares in traded stocks like Bacanora and Western Lithium). The rest is a valuation of the JVs (direct interests) in Sonora and Yangibana. £22 million assets by its own valuation compares with a market cap of £54.5 million at 0.8p that is a 150% premium to NAV. Ouch. Double ouch. Even if Big Dave was a plus factor and after recent events that has to be in some doubt, his presence does not justify £32.5 million of hot air in the price. Bacanora has a Market Cap of around £65 million, which is pretty rich for an explorer that is still at an early stage (PFS or earlier) for its assets. That compares with a raft of AIM explorers sitting on $billion NPV assets and M Caps of fractions of that. One can argue that the size of its deposit justifies that valuation but it is hard to say that its shares are compellingly cheap. So it is here that the stock promotion skills of the fat Aussie share ramper Dave Lenigas come into play – he talks up the Rare Earth share price, raises money, and then uses Rare cash to buy Bacanora shares which in turn allows him to declare an increased asset value on the Rare books. It's all very cozy. Now let’s turn to the cash - or lack of it. Rare has several sources of cash, one of which is a $10 million debt facility with YAGM that expires in June 2016. $5 million has been drawn down already which will need repaying (together with the 10% coupon) in eight months. According to the last interims there was – at June 30 - £1.65 million in cash and £2.2 million due from the YAGM equity swap. However, in an RNS of Oct 2nd Rare revealed that the swap arrangement had been terminated, with only £1.25m paid. Depending which figure you believe that puts the company on between £2.9 million or £5 million in cash to start H2 2015. What then has been the outflow in H2 2015? Well looking at the interims (and remembering this is DL's flagship operation, so he and the Board get substantial salaries) it seems there is a six-month cash burn of c £1 million for 'administrative expenses'. What else has happened since end of June? Well there's been plenty of equity purchases. Rare already had a 6.65% holding in European Metals (costing £200,000) and then increased this in H2 (1 July RNS) to 9.61%. The purchase price isn't given but based on the earlier placing let's say this is around £100,000. On 2 September 2015, the Company announced that it had increased its shareholding in Bacanora Minerals Ltd to 16.8%, through on market purchases totaling £324,530. On 17 September 2015, the Company announced that it had increased its shareholding in Bacanora Minerals Ltd to 17.02%, through on market purchases totaling £181,405 On 15th Oct REM announced an additional 2.07% holding in European Metals, costing £170,640. Finally, on 16th November REM announced that it had subscribed for £1.52 million worth of new BCN shares. To add all those up: EM £100,000 (est) EM £170,640 BCN £324,530 BCN £181,405 BCN £1.52 million Total share purchases disclosed in H2 2015 so far: £2.3m Now assuming that there hasn't been a sudden attack of corporate conscience and that the administrative expenses (lol) are still running at £1 million per six months that gives a minimal H2 expenditure of around £3.3m. This compares with the estimated cash balance at the start of H2 of £2.9m or £5m (depending how you read the somewhat opaque and murky RNSes). Even in the more charitable model this would see Rare entering 2016 with between minus £400,000 and plus £1.7 million in the bank And let's not forget: "At the period end the Company had approximately £5.48 million of its US$ 10 million debt facility with YAGM available for drawn down, the individual drawdowns are subject to approval by YAGM. This facility will expire in June 2016." There is $5 million due to be repaid (plus a 10% coupon) – possibly by as soon as the end of June 2016. There are other birds coming home to roost in the near future soon. Rare has a 30% free carry until the start of the BFS for one part of the Yangibana Rare Earth asset co-owned with Hastings. HAS are moving the project forward swiftly and it won't be that long before the BFS will start – and Rare will be faced with a cash call. It could consider selling the asset to Hastings, although this may not be the easiest of transactions to negotiate since Hastings is the only potential buyer in town. At best, Rare might be able to exit that position pre-BFS with £1-2m proceeds (based on this being 30% of part of Yangibana which is one of two Hastings projects, and Hastings having a Market Cap of c £25 million). The other flock coming home to roost is the likelihood of a cash call from Bacanora. Rare has a 30% stake in Megalit and Mexilit projects, held by co-owned JV companies. Now that the initial earn-in has taken place, exploration and development costs are split proportionately between Rare and Bacanora. If Rare wants these two assets to be developed further then it will be facing cash calls – and bear in mind that Bacanora has just had a £8.8 million fundraising which together with its existing cash pile (cC$10 million at end of H1 2015) means it has loads of cash at the bank. Rare, in contrast, is running on vapours. Rare thus faces big headwinds moving into 2016. It has its $5 million plus interest debt to repay to YAGM by June (call that £3.3 million). It faces a cash call from Hastings or will have to sell the Yangibana asset. Meanwhile the two JVs with BCN will be wanting their 30% pounds of flesh to progress those. There are several ways out of this in the short term. Relinquishing the Yangibana asset could generate a couple of million quid and pay off two thirds of the YAGM debt. But this does leave the issue of how Rare will contribute its part of the Sonora JVs let alone keep the PLC lights on after June. And here is the sting in the tail. Rare has a 30% stake in Megalit and Mexilit, but has a zero JV stake in La Ventana – this being the initial deposit developed by Bacanora. This is large and 100% owned by Bacanora (and thus Rare's interest is solely via it equity stake in BCN). La Ventana is far more advanced that Megalit/Mexilit (it has had a PFS for quite a while now) and its entirely possible that Bacanora might choose to develop its 100% owned – and most interesting - asset first, and leave the two JV assets for somewhere later down the line. Indeed, if Rare is struggling to fund its part of the JVs the simplest solution is for Bacanora to put those assets largely on hold, and instead focus on the La Ventana asset. The bear case for REM is that it will need to start liquidating assets in order to repay its borrowings, and there will be little progress in its two JV assets due to its inability to make substantial contributions to their development. Meanwhile Bacanora can focus on its 100% owned La Ventana asset. But even here Bacanora may struggle; the Share price of Bacanora has remained solid in 2015 but only because REM has stepped in to buy shares at any hint of weakness. As the Rare cash pile is now largely exhausted, this will remove a key support for the Bacanora share price going into 2016. I stress that Bacanora may be able to get its own shares moving if it can explain the case for La Ventana but without the constant support of share buying by Rare it is going to have to work jolly hard. Rare Earth Minerals shares have traded for a long time at a premium to its assets – a "Lenigas" premium. How long that premium will hold now that revulsion against Big Dave seems to increase on a daily basis is any one's guess. However a £55 million Market Cap for a company with £22 million of assets and several potential big bills just round the corner, one that is going to start 2016 with only enough cash to pay the admin costs for nine months at best ( and ignoring debt repayments), is hardly sounding like a deep value play. Dave Lenigas has said "no dilution for REM". That may well be true (at least over the short period). It is possible that an asset sale (in particular Yangibana) could kick the can down the road a little further, and YAGM might allow the debt to roll over for another year even if further drawdowns aren't allowed. But given the track record of Jabba the Hutt and confetti, one wouldn't bank on it. How would I value Rare? The market value of the assets is £12 million, with another estimated £10 million for illiquid JV stakes. One would often expect an investing company to trade at a discount to NAV especially when part of the p/f is illiquid unlisted assets such as JVs (especially when those JV assets come with potential cash calls). Let's be generous and give a discounted valuation to the assets of £15 million, and then take off £3.3 million for the debt & interest outstanding. £12.7 million adjusted assets, which equates to a share price of just under 0.2p (compared to a mid of 0.8p at the moment). - See more at: hxxp://www.shareprophets.com/views/16642/the-bear-case-on-rare-earth-minerals-where-s-the-cash-coming-from-david-lenigas#sthash.8rm6AZcB.dpuf
20/11/2015
00:55
djfrankie2: FROM WINNIFRETHS SHARE PROPHETS With a hat tip to reader Rudyard, I now lay out the bear case for Rare Earth Minerals (REM), another David “Green Hair Services” Lenigas AIM Casino counter that is monumentally overvalued. The fat aussie share ramper Jabba The Hutt insists he has no need to issue shares. The maths suggests he has to. The shares should fall by 75%. The relationship between big Dave's Rare Earth Minerals and dual-listed Bacanora Minerals (BCN) has always been close. Bacanora and the Sonora lithium play is the biggest component of the REM portfolio and thus it's NAV. In return, Rare Earth continues to support the Bacanora share price by buying more shares on any Bacanora weakness. This is does by raising cash from what it euphemistically calls "investing activities" in the Interims but in reality have been share placings (£2.5 million to Standard Life, an equity swap (i.e. drawn out placing) with Yorkville In the H1 2015 interims Rare declared net assets of £21.79 million. Of this amount £12.74 million represented the market value of its investments at the period end (i.e. the value of the shares in traded stocks like Bacanora and Western Lithium). The rest is a valuation of the JVs (direct interests) in Sonora and Yangibana. £22 million assets by its own valuation compares with a market cap of £54.5 million at 0.8p that is a 150% premium to NAV. Ouch. Double ouch. Even if Big Dave was a plus factor and after recent events that has to be in some doubt, his presence does not justify £32.5 million of hot air in the price. Bacanora has a Market Cap of around £65 million, which is pretty rich for an explorer that is still at an early stage (PFS or earlier) for its assets. That compares with a raft of AIM explorers sitting on $billion NPV assets and M Caps of fractions of that. One can argue that the size of its deposit justifies that valuation but it is hard to say that its shares are compellingly cheap. So it is here that the stock promotion skills of the fat Aussie share ramper Dave Lenigas come into play – he talks up the Rare Earth share price, raises money, and then uses Rare cash to buy Bacanora shares which in turn allows him to declare an increased asset value on the Rare books. It's all very cozy. Now let’s turn to the cash - or lack of it. Rare has several sources of cash, one of which is a $10 million debt facility with YAGM that expires in June 2016. $5 million has been drawn down already which will need repaying (together with the 10% coupon) in eight months. According to the last interims there was – at June 30 - £1.65 million in cash and £2.2 million due from the YAGM equity swap. However, in an RNS of Oct 2nd Rare revealed that the swap arrangement had been terminated, with only £1.25m paid. Depending which figure you believe that puts the company on between £2.9 million or £5 million in cash to start H2 2015. What then has been the outflow in H2 2015? Well looking at the interims (and remembering this is DL's flagship operation, so he and the Board get substantial salaries) it seems there is a six-month cash burn of c £1 million for 'administrative expenses'. What else has happened since end of June? Well there's been plenty of equity purchases. Rare already had a 6.65% holding in European Metals (costing £200,000) and then increased this in H2 (1 July RNS) to 9.61%. The purchase price isn't given but based on the earlier placing let's say this is around £100,000. On 2 September 2015, the Company announced that it had increased its shareholding in Bacanora Minerals Ltd to 16.8%, through on market purchases totaling £324,530. On 17 September 2015, the Company announced that it had increased its shareholding in Bacanora Minerals Ltd to 17.02%, through on market purchases totaling £181,405 On 15th Oct REM announced an additional 2.07% holding in European Metals, costing £170,640. Finally, on 16th November REM announced that it had subscribed for £1.52 million worth of new BCN shares. To add all those up: EM £100,000 (est) EM £170,640 BCN £324,530 BCN £181,405 BCN £1.52 million Total share purchases disclosed in H2 2015 so far: £2.3m Now assuming that there hasn't been a sudden attack of corporate conscience and that the administrative expenses (lol) are still running at £1 million per six months that gives a minimal H2 expenditure of around £3.3m. This compares with the estimated cash balance at the start of H2 of £2.9m or £5m (depending how you read the somewhat opaque and murky RNSes). Even in the more charitable model this would see Rare entering 2016 with between minus £400,000 and plus £1.7 million in the bank And let's not forget: "At the period end the Company had approximately £5.48 million of its US$ 10 million debt facility with YAGM available for drawn down, the individual drawdowns are subject to approval by YAGM. This facility will expire in June 2016." There is $5 million due to be repaid (plus a 10% coupon) – possibly by as soon as the end of June 2016. There are other birds coming home to roost in the near future soon. Rare has a 30% free carry until the start of the BFS for one part of the Yangibana Rare Earth asset co-owned with Hastings. HAS are moving the project forward swiftly and it won't be that long before the BFS will start – and Rare will be faced with a cash call. It could consider selling the asset to Hastings, although this may not be the easiest of transactions to negotiate since Hastings is the only potential buyer in town. At best, Rare might be able to exit that position pre-BFS with £1-2m proceeds (based on this being 30% of part of Yangibana which is one of two Hastings projects, and Hastings having a Market Cap of c £25 million). The other flock coming home to roost is the likelihood of a cash call from Bacanora. Rare has a 30% stake in Megalit and Mexilit projects, held by co-owned JV companies. Now that the initial earn-in has taken place, exploration and development costs are split proportionately between Rare and Bacanora. If Rare wants these two assets to be developed further then it will be facing cash calls – and bear in mind that Bacanora has just had a £8.8 million fundraising which together with its existing cash pile (cC$10 million at end of H1 2015) means it has loads of cash at the bank. Rare, in contrast, is running on vapours. Rare thus faces big headwinds moving into 2016. It has its $5 million plus interest debt to repay to YAGM by June (call that £3.3 million). It faces a cash call from Hastings or will have to sell the Yangibana asset. Meanwhile the two JVs with BCN will be wanting their 30% pounds of flesh to progress those. There are several ways out of this in the short term. Relinquishing the Yangibana asset could generate a couple of million quid and pay off two thirds of the YAGM debt. But this does leave the issue of how Rare will contribute its part of the Sonora JVs let alone keep the PLC lights on after June. And here is the sting in the tail. Rare has a 30% stake in Megalit and Mexilit, but has a zero JV stake in La Ventana – this being the initial deposit developed by Bacanora. This is large and 100% owned by Bacanora (and thus Rare's interest is solely via it equity stake in BCN). La Ventana is far more advanced that Megalit/Mexilit (it has had a PFS for quite a while now) and its entirely possible that Bacanora might choose to develop its 100% owned – and most interesting - asset first, and leave the two JV assets for somewhere later down the line. Indeed, if Rare is struggling to fund its part of the JVs the simplest solution is for Bacanora to put those assets largely on hold, and instead focus on the La Ventana asset. The bear case for REM is that it will need to start liquidating assets in order to repay its borrowings, and there will be little progress in its two JV assets due to its inability to make substantial contributions to their development. Meanwhile Bacanora can focus on its 100% owned La Ventana asset. But even here Bacanora may struggle; the Share price of Bacanora has remained solid in 2015 but only because REM has stepped in to buy shares at any hint of weakness. As the Rare cash pile is now largely exhausted, this will remove a key support for the Bacanora share price going into 2016. I stress that Bacanora may be able to get its own shares moving if it can explain the case for La Ventana but without the constant support of share buying by Rare it is going to have to work jolly hard. Rare Earth Minerals shares have traded for a long time at a premium to its assets – a "Lenigas" premium. How long that premium will hold now that revulsion against Big Dave seems to increase on a daily basis is any one's guess. However a £55 million Market Cap for a company with £22 million of assets and several potential big bills just round the corner, one that is going to start 2016 with only enough cash to pay the admin costs for nine months at best ( and ignoring debt repayments), is hardly sounding like a deep value play. Dave Lenigas has said "no dilution for REM". That may well be true (at least over the short period). It is possible that an asset sale (in particular Yangibana) could kick the can down the road a little further, and YAGM might allow the debt to roll over for another year even if further drawdowns aren't allowed. But given the track record of Jabba the Hutt and confetti, one wouldn't bank on it. How would I value Rare? The market value of the assets is £12 million, with another estimated £10 million for illiquid JV stakes. One would often expect an investing company to trade at a discount to NAV especially when part of the p/f is illiquid unlisted assets such as JVs (especially when those JV assets come with potential cash calls). Let's be generous and give a discounted valuation to the assets of £15 million, and then take off £3.3 million for the debt & interest outstanding. £12.7 million adjusted assets, which equates to a share price of just under 0.2p (compared to a mid of 0.8p at the moment). - See more at: hxxp://www.shareprophets.com/views/16642/the-bear-case-on-rare-earth-minerals-where-s-the-cash-coming-from-david-lenigas#sthash.8rm6AZcB.dpuf
21/10/2015
15:34
sorksandnorks: Although the REM share price is in a decline at the moment, in the past 3 months it has fallen to 0.87p twice and bounced back sharply above 1.0p on both occasions. The fundamentals have not changed and the outlook is improving so there is no reason why it will not do the same this time. Tesla may be having teething troubles with their luxury cars but they are not the only ones who need Lithium. This seems to be an ideal buying opportunity IMHO.
10/10/2014
11:35
gilbly: dosser2 10 Oct'14 - 08:07 - 17333 How much BCN did DL buy in the placing? Dosser2 - I had REM down to buy the whole shindig of placing shares, what was it £4.75 million worth at 33p per share which obviously never transpired. I think they bought on the open market. After my comments I have listed the 28th July RNS in part along with part of the Early Warning Report (EWR). The placing was a great opportunity; they either missed this chance, for some reason or other or were swayed by BCN not to apply, perhaps as they already had first option on increasing to 49.9% on the JVs. It’s a mystery to me. However if they are negotiating on the option for the 19.9% of JV#1 they will be lucky if they get it for 33p. You never know and maybe the price was agreed at 33p providing REM never applied for placing shares. A rough attempt to estimate what the 19.9% interest in JV#1 will cost REM basing it on the Current resources. Say BCN worth = 84m x £0.52 = £43.68 million BCN resources = La Ventanna + 70% of JV#1 (ignoring the JV#2). i.e. BCN resources = 1.273mt + (0.7 x 2.01mt) = 2.68mt and their worth is £43.68 million. REM buying 20% of JV1 = 2.01mt x 0.2 = 0.404mt. So approx. REM price may be = £43.68 x (0.404 /2.68) = £6.584 million. This is a large amount at today’s rate, however it could obviously be less if the negotiated price is based on a discounted rate of say 33p, in line with the share placing. ie a factor of 33p/52p = 0.6346. Therefore on this basis we may have to pay £6.584mln x 0.6346 which equals £4.18 million for the 19.9% interest on JV#1. Again it may me well wide of the mark as this also excludes any JV#2 consideration and any other projects. Still a fair amount, perhaps we will get it cheaper. We can’t expect BCN to give it away. REM acquired the increase from 10% to 30% in both JVs at a previously agreed price of $3 million (say £1.8million) which was cheap. If we had $10 million available, what have we got left, maybe about $7 million to draw down on? At least the current low price may offer a strong bargaining position if they are in discussions. If an off-take deal is done we will have no mony worries, so whether a deal is close or not, they may agree to hold off payment, but agree in principle to a fair price for the 19.9% of JV#1. It may depend on what the price is. Also whilst they are at it agree on a price for the JV#2 19.9% option. Gil RNS Number : 4426N Rare Earth Minerals PLC 28 July 2014 Rare Earth Minerals Plc. ("Rare Earth Minerals", "REM" or "the Company") REM reports holding in Bacanora Minerals at 11.68% New Early Warning Report on TSX-V Rare Earth Minerals (AIM: REM) announces that REM has filed an Early Warning Report ("EWR"), under the Canadian TSX-V rules, to highlight that as a result of Bacanora Minerals Ltd ("Bacanora") Placing and REM's further market purchases the Company now owns 11.69% of Bacanora's issued and outstanding shares. These on market purchase totalled £1,072,898 and were made on the 25 July 2014. The full EWR is shown below and it's reporting is a specific requirement of the TSX-V for REM as a plus 10% substantial shareholder of Bacanora. EWR On July 25, 2014, Rare Earth Minerals plc ("REM"), an investment company listed on the Alternative Investment Market of the London Stock Exchange (the "AIM"), completed the acquisition of 1,371,208 common shares (each a "Share") in the capital of Bacanora Minerals Ltd. (the "Company") at a price of $CAD 1.43 per Share on the open market through the facilities of the AIM and the TSX Venture Exchange (the "Dealings"). Prior to the Dealings, REM beneficially owned and exercised full control and direction over an aggregate of 7,772,000 Shares of the Company (the "Initial Shares"), representing an interest of 9.9% of the Company's issued and outstanding shares at the open of trading of BCN's common shares on the AIM on July 25, 2014. On the previous day, prior to the Company's placement of 14,393,940 common shares and the listing of its common shares on the AIM, the Initial Shares represented an interest of 12.19% of the Company's issued and outstanding shares. The Initial Shares were purchased in several instalments over the period beginning on September 13, 2013until July 14, 2014 at purchase prices ranging from $CAD 0.33 per Share to $CAD 1.19 per Share, and at a weighted average price of $CAD 0.58 per Share. As a result of the Dealings, REM beneficially owns and exercises control over an aggregate of 9,143,208 Shares representing an interest of approximately 11.68% of the Company's issued and outstanding shares. This early warning report is further to the early warning reports of (i) May 22, 2014 announcing REM's beneficial ownership and control over an aggregate of 6,440,500 Shares, representing an interest of approximately 10.18% of the Company's issued and outstanding shares, and (ii) July 14, 2014 announcing REM's beneficial ownership and control over an aggregate of 7,772,000 Shares, representing an interest of approximately 12.19% of the Company's issued and outstanding shares.
28/9/2014
18:50
gilbly: Morning , evening or whatever - After USA hols have a bit of Jet lag here and brain not yet in gear. Still trying to catch up with the posts on the bbs. Edit - Took 2nd sentence out. Hi Langster and Seanywany – The principle of offering the miner a percentage share in the JVs may well be up for consideration by REM and BCN as it saves on fund raising, but I would surmise at a much smaller percentage to reflect effectively the going rate for the job. Yes and what is the going rate? Regardless of whether or not REM do take up their optional 19.9% JV interest I think any offer to a miner of a share of this magnitude (20%) is a very large price to be paying for a company to undertake the mining operation. Suppose they mine JV1 first, which has a 2.01 mt resource, at $4,500 / tonne ($6500 – $2000 op costs), this is worth about $9 billion and a 20% share would equate to $1.8 billion for the mining company. This cost figure will increase if we get the op. costs down to $900 / tonne as CO-E has implied. I would imagine if anyone is offered a share for mining the percentage will hopefully be much less, of course it will depend on the funding involved in any mining deal. REM and BCN will no doubt ensure they will get the best finance deal they can whether it is through a forward agreement with a potential customer prior to mining so they have the required finance upfront, or through a deal with a miner or through a deal with a financier or bank when they decide to commence mining. Given the potential resource at Sonora, REM arranged the YAGM $10 million deal without any problems whereas there are plenty of miners who can’t get money that easily. I think REM will negotiate an agreement, if they have not already done so for the increase from 30% to 49.9%. It is unlikely however to be as cheap as increasing each of the JV interests from 10% to 30% which cost REM $1.5 million ($500K + $1mln) for each of the JVs. This being the case it begs the question what exactly will it cost REM. If the price is right they may be able to afford the JV#1 increase. It depends on how much we have left of the $10 million and of course DL knows exactly his reasons for the $10 million arrangement in the first instance. I would think that prior to the finance arrangement he would already have a settlement figure in his mind that REM will have to pay for the extra 19.9% and which may have previously been agreed on but not officially. No one borrows 10$m unless they know what they are going to spend it on, surely? If it was possible, an ideal arrangement would be to reach an agreement on the price now with the funds paid at a later date when in production, but probably this is unlikely to happen. BCN don’t need the funds just yet having had their placing and AIM listing. Just for interest if BCN have 79 million shares, 20% of this is just less than 16million shares and to buy these at 70p would cost £11.2million. So the price for a further 20% of JV#1 only, has to be less than this. A rough attempt to estimate what the 19.9% interest in JV#1 will cost REM basing it on the Current resources. Say BCN worth = 79m x £0.70 = £55.3 million BCN resources = La Ventanna + 70% of JV#1 (ignoring the JV#2). i.e. BCN resources = 1.273mt + (0.7 x 2.01mt) = 2.68mt and their worth is £55.3 million. REM buying 20% JV1 = 2.01mt x 0.2 = 0.404mt. So approx. REM price may be = £55.3 x (0.404 /2.68) = £8.34 million. This is a large amount at the going rate, however it could obviously be less if the negotiated price is based on a discounted rate of say 33p, in line with the share placing. i.e about half of the 70p. Therefore on this basis we may have to pay about £4 million for the 19.9% interest on each JV. Again it may me well wide of the mark as this also excludes any JV#2 consideration. We can’t expect BCN to give it away. In acquiring the increase from 10% to 30% they gave REM 20% of both JVs at a previously agreed price of $3 million (say £1.8million) Anyhow if it is currently being negotiated the current low BCN price (68p or so) may allow the 20% to be purchased at a discounted price and if they achieve this 20% for the same i.e. $3 million I think it would be a great bargain. Whatever the costs involved BCN and REM may agree, as per the previous arrangements that REM pays an initial fee upfront and then a subsequent fee to be paid in a years time to cover the necessary development and exploratory work. It may allow REM breathing space but again if they get a forward financing deal in the end it may not matter. If REM get to 49.9% on JV#1, this along with the 12.003% share of BCN gives them an economic interest of 55.91% in JV#1. REM also have the first right of refusal to negotiate terms to increase to 49.9% on the JV#2 and this is set to expire on December 2015 as per RNS 19Aug 2014. We may also be able to negotiate an extension on this date also as we exercised the increase to 30% on JV#2 earlier than planned. I am sure there are a few established companies aware of what BCN and REM have to offer in terms of the resource quality, current resource size and potential resource size and the associated lower op. costs in comparison with themselves. We are making progress and the news is good on Greenland. Just think how far we have come in a short space of time. Patience is required here and if you can hold on to your shares I think we will have a great opportunity here regardless of which direction we take in the future. Edit Seanywany - Just about to post and I then notice the ref to Toyota acquiring 25% stake in Orocobre and a similar occurrance may well happen here. It would be nice to have Ford, Kia and who ever, fighting to get on board with us. I am sure there will have been discussions or there will be discussions taking place re potential customers etc. Re this article interesting there was no mention of what they paid for their interest, just wondered if it was the going rate or a premium for the share interest? I’ll look later at Toyota, out of interest later, and see what they have forked out to have a share ownership in a Lithium supplier which will aid their manufacturing needs and allow them to have a say/input in it. The processing method to achieve the grade is by brine and I’m a bit surprised that their costs are about $2000 / tonne. This is about what BCN quoted ($1958 / t) in their Jan 2013 PEA and subsequent to which CO-E has suggested BCN can obtain operating costs in the order of $900. Maybe the processes are cheapening and they are all catching up with us. I am sure that the brine process takes up to two years to yield the Li, it is a slow process dependent on the weather but eventually gets there. Further to my Post No.15816 re the current and potential resources and share price estimate, (which I apologise for the size), I recall I was going to add something to it, but have forgotten, unless it was to do with BCN Borate valuation, I know I added a share price valuation for the Borate to the summary. Oh well enough for tonight, I’ll watch the golf highlights and off to bed. No Sky TV, but hopefully Tablet TV shortly, that’s what we’ve been saying for years!!! Hope we all have a nice informative week. Gil
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