UK-based company Rare Earth Minerals has agreed to acquire 7.7% interest in Auroch Minerals through a A$65,000 share subscription.
Rare Earth Minerals has announced it will subscribe 6.5 million new shares carrying a price of A$0.10 per share in Auroch Minerals, an Australian ASX listed company.
This ASX listed company holds a strong financial position, with A$6.4m in cash and A$2m in receivables.
Rare Earth Minerals executive chairman Andrew Suckling said: “Rare Earth Minerals continues to deploy its expertise in identifying value investments in highly prospective lithium plays.
“We will leverage our mining, marketing, and lithium industry knowledge and experience to provide continuing support to Auroch, and to assist management and develop these prospects rapidly up the development curve.
"We look forward to a close collaboration with the management of Auroch as it develops its lithium interests."
The placing funds, along with Auroch's existing cash (combined $6.4m), will be utilised for the aggressive exploration and development programme.
The programme will target high-grade lithium in pegmatites, similar to those that have been commercialised in Western Australia over the last three years.
Auroch is currently focusing its activities over five applied-for Exclusive Prospective Licenses (EPL) in the Karibib area of Namibia.
The licence applications are located in a region that exhibit strong geological evidence of a significant number of late tectonic granites and associated lithium caesium tantalum pegmatite swarms.
About 90% of total lithium production from Namibia is produced from this area where the national government has identified more than 100 pegmatite occurrences.
Rare Earth Minerals expects to complete the financing by early December.
Image: Pieces of lithium metal. Photo: Courtesy of Dnn87 / Wikipedia