Rare Earth Minerals logs loss, but hopes more Tesla-like agreements to the rescue

Rare Earth Minerals logs loss, but hopes more Tesla-like agreements to the rescue

In August, Rare Earth Minerals signed Tesla as a potential customer for lithium mined from its Sonora project in Mexico. (Image from WikiMedia Commons)

Rare Earth Minerals (LON:REM) logged Monday a pre-tax loss for the year ending in June wider than expected, but said it hopes its supply deal with high-profile electric car group Tesla would be the first of  several off-take agreements for its lithium.

The company, which is invested in numerous natural resource projects, reported a £1.2 million pre-tax loss in the first six months of 2015, widening from the £191,000 loss reported a year earlier.

Last month the firm, together with joint venture partner Bacanora Minerals (LON:BCN), signed up Tesla as a potential customer for lithium mined from the Sonora project in Mexico.

"We are currently advancing additional potential off-take agreements with whom we have non-disclosure agreements with and we look forward to updating the market as we progress of these discussions," REM said in today’s statement.

While Rare Earth Minerals does not generate any revenue yet, its portfolio include interesting projects, such as the Yangibana rare earth mineral project in Australia, the Western lithium project in Nevada in the US, and the Cinovec lithium project in the Czech Republic.