25 September 2024
Rainbow Rare Earths
Limited
("Rainbow" or "the Company")
LSE: RBW
Completion of Ecora Royalty
Agreement Transaction
Further to the announcement on 1 July 2024 that
Rainbow has entered into a royalty financing and share subscription
agreement with Ecora Resources PLC ("Ecora"), Rainbow is pleased to
announce that all conditions precedent required for the payment of
the US$8.5 million royalty consideration have been met and the
funds, net of US$229k transaction costs, have been received by
Rainbow.
This is in addition to the funds raised by the
associated share subscription which completed in July and delivered
an additional ca. US$1.5 million to Rainbow, for a total gross
funding of US$10 million.
As previously announced, the funds will be used
to:
1. deliver the completion of
the Definitive Feasibility Study on the Phalaborwa project;
and
2. cover all other Company
financing requirements up to June 2025.
For further
information, please contact:
|
Rainbow Rare
Earths Ltd
|
Company
|
George Bennett
Pete Gardner
|
+27 82 652 8526
|
|
|
IR
|
Cathy Malins
|
+44 7876 796 629
cathym@rainbowrareearths.com
|
|
Berenberg
|
Broker
|
Matthew Armitt
Jennifer Lee
|
+44 (0) 20 3207 7800
|
|
Stifel
|
Broker
|
Ashton Clanfield
Varun Talwar
|
+44 20 7710 7600
|
|
Tavistock
Communications
|
PR/IR
|
Charles Vivian
Tara Vivian-Neal
|
+44 (0) 20 7920 3150
rainbowrareearths@tavistock.co.uk
|
Notes to
Editors:
About
Rainbow:
Rainbow Rare Earths aims to be a forerunner in
the establishment of an independent and ethical supply chain of the
rare earth elements that are driving the green energy transition.
It is doing this successfully via the identification and
development of secondary rare earth deposits that can be brought
into production quicker and at a lower cost than traditional hard
rock mining projects, with a focus on the permanent magnet rare
earth elements neodymium and praseodymium, dysprosium and
terbium.
The Company is focused on the development of
the Phalaborwa Rare Earths Project in South Africa and the earlier
stage Uberaba Project in Brazil. Both projects entail the recovery
of rare earths from phosphogypsum that occurs as the by-product of
phosphoric acid production, with the original source rock for both
deposits being a hardrock carbonatite.
The Phalaborwa Preliminary Economic Assessment
has confirmed strong base line economics for the project, which has
a base case NPV10 of US$627 million, an average EBITDA operating
margin of 75% and a payback period of < two years.
More information is available at
www.rainbowrareearths.com