(Alliance News) - Rainbow Rare Earths Ltd said Wednesday it has raised USD5.5 million in a placing which will go towards increasing production at its Gakara rare earth project in Burundi, through the opening of new mining sites.
The high-grade rare earth producer issued 144.7 million shares at a price of 3.0 pence per share, reflecting a 21% discount to Rainbow's closing price on Tuesday at 3.8p.
Shares in Rainbow Rare Earths closed 17% lower in London at 3.07 pence on Tuesday.
Arden Partners and Turner Pope acted as joint brokers in connection with the placing.
Following the placing, Rainbow Rare Earths now has 380.3 million shares issued overall.
Rainbow Rare Earths (RBW)