Kerman & Co advises AIM listed client Rare Earth Minerals on placing to raise approximately £2.5 million
January 15, 2015
Kerman & Co advised Rare Earth Minerals, the AIM listed investment company, on the placing of 312,500,000 new Ordinary Shares at a placing price of 0.8p per share to an institutional investor. The placing raised gross proceeds of £2.5 million.
The placing proceeds will be used to supplement the Group’s existing cash balances and to further the investment and development of its existing portfolio (in particular its joint venture assets in the Sonora Lithium project in Mexico) and for the potential investment into new rare earth or lithium mineral projects.
Commenting on the acquisition, Rare Earth Minerals Chairman David Lenigas commented: “The board is pleased to have closed this placing with a single major UK institutional investor, as we endeavour to maximise shareholder value this year from the Company’s significant investments in the Sonora Lithium Project in northern Mexico and our rare earth elements (REE) investments in Australia and Greenland. The Company now has a stronger balance sheet going forward and plans to seek ways of increasing our exposure to these significant resource plays.”
Kerman & Co’s Natural Resources team advised Rare Earth Minerals on the transaction.