Rare Earth Minerals to have 30% of Megalit Lithium JV
The Megalit Joint Venture includes the San Gabriel, Buenavista concessions and the 94,814 hectare Megalit concession that surround the Sonora Lithium Project in northern Mexico.
Under the terms of the option agreement with Bacanora, announced on March 13, 2014, REM has paid Bacanora cash consideration of $500,000 and has committed to spend a further $1,000,000 on exploration and drilling on the Megalit Joint Venture over the next year. REM's interest in the Megalit Joint Venture will increase to 30% when the $1,000,000 has been provided to the joint venture over the next year or sooner.
REM has a right of first refusal (until December 2015) to negotiate terms to increase its interest in the Megalit JV from 30% to a maximum of 49.9%.
REM currently has a 10.18% shareholding in Bacanora, its joint venture partner in both the Megalit and Fleur-El Sauz Lithium Projects in Northern Mexico.
This interest, when aggregated with REM's 30% direct interest in the Fleur-El Sauz Lithium Joint Venture and the existing 10% direct interest in the Megalit Joint Venture, results in a total economic interest in Fleur-El Sauz of approximately 37.13% and a total economic interest in Megalit of approximately 19.16%.
David Lenigas, the Company's Chairman commented: "REM sees significant exploration potential for Lithium in this Megalit Joint Venture and we look forward to shortly reporting results from the current drilling programme being carried out on the Megalit concession." ■