Rare Earth Minerals PLC Friday said it was commencing a exploration programme for its four mining concessions in south-west Greenland in partnership with Greenland Minerals and Energy Ltd, a major operator in Greenland's mineral industry.

Rare Earth Minerals will issue 20 million news REM shares to Greenland Minerals as a one-off payment for the agreement, which will see Greenland Minerals take on day-to-day management control of the four licenses for the exploration programme. Rare Earth Minerals will pay all costs associated with the programme, it said.

The exploration program is centred around the minerals investment and development company's four licenses totalling 853 square kilometres adjacent to Greenland Minerals' licenses on the vast Kvanefjeld site. This is thought to be one of the largest multi-element deposits, boasting the second-largest deposit of rare earth oxides in the world compliant with the Joint Ore Reserves Committee code.

Greenland Minerals recently announced a non-binding agreement with China Non-Ferrous Metal Industry's Foreign Engineering and Construction Co Ltd to cooperate on the rare earth concentrates from the Kvanefjeld Project, using the Chinese company's rare earth separation know-how.

"This is a very significant development for REM that will see our exploration leases evaluated by experienced operators in Greenland," Rare Earth Minerals Chairman David Lenigas said in a statement. "The exploration work to date has broadly defined a number of key targets and we are now in a position with our strategic partners to embark on a comprehensive exploration program."

The 20 million new shares being issued to Greenland Minerals will start trading on AIM next Thursday, at which point Rare Earth Minerals will have 5.19 billion shares in issue. Rare Earth Minerals shares were trading at 0.48 pence Friday morning, up 2.1%, making the compensation worth GBP96,000.