Bacanora Signs Definitive Agreement with Rare Earth Minerals

Bacanora Minerals Ltd. (TSXV:BCN) announced that it has signed a definitive joint venture agreement with Rare Earth Minerals plc (LSE:REM) regarding the San Gabriel, Buenavista and Megalit concessions. It will supercede a previous memorandum of understanding between the companies.

The company also provided updates on its plans for the Megalit concession and progress on the Mexico-based Sonora lithium project.

Highlights of the new agreement include:

• REM has the option to acquire an initial 10% interest in the San Gabrial, Buenavista and Megalit concessions by virtue of REM paying Bacanora an upfront cash consideration of U.S.$250,000 and spending U.S.$500,000 on exploration and drilling on the Joint Venture #2 concessions over a 6 month period.
• REM has the option to increase its interest to 30% by virtue of an additional cash consideration of U.S.$500,000 and committing to a further U.S.$1,000,000 in expenditures for exploration and drilling on the same concessions over 1 year.
• REM will have the right to advance these payments and acquire the 30% on an accelerated basis.
• REM will then have an exclusive option (exercisable until December 2015) to negotiate terms to increase from a 30% interest to a maximum of 49.9%.

Click here to read the full Bacanora Minerals Ltd. (TSXV:BCN) press release.