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Exactly Hertstrader - that’s why I keep on saying that we need unexpected good news !

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Tuesday 25 February, 2020
Rainbow Rare Earths
US$1.0 million Unsecured Loan from CEO
RNS Number : 9739D
Rainbow Rare Earths Limited
25 February 2020

FOR IMMEDIATE RELEASE

25 February 2020



Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE: RBW)

Unsecured Loan of US$1.0 million from an affiliate of the CEO George Bennett



Rainbow, the rare earth mining company, is pleased to announce a new funding agreement with one of its largest shareholders, Pipestone Capital Inc ("Pipestone"), of which George Bennett (Rainbow's CEO) is the ultimate beneficiary.



The funding comprises an unsecured loan of US$1.0 million to support Rainbow's development and operations. The funding is intended to finance ongoing exploration, operations, working capital and other general requirements.



The facility underlines the confidence placed in the Gakara project by the CEO, George Bennett, who already holds an interest in 8.6% of the Company's issued share capital. Since his appointment in August 2019, George has set out a revised strategy for the Company based around turning Gakara into a major strategic source of rare earths, with the aim of producing at least 20,000 tonnes per annum of concentrate. The latest corporate presentation can be found at www.rainbowrareearths.com



The loan carries no interest, however includes warrants over 2,000,000 new Ordinary Shares of no par value ("Ordinary Share"), at a strike price of 4.55 pence per Ordinary Share, and a life to expiry of 4 years. The strike price represents a premium of 30% to the 20-day volume weighted average price of the shares prior to the date of the agreement.



It is intended that the loan be repaid out of the proceeds of any future fundraise; however Pipestone may elect to convert a portion of the loan into equity on the same terms as those offered to investors at that time.



Loan Amount:

US$1,000,000

Loan Term:

12 months

Interest:

Nil

Warrants:

Over 2 million shares at 4.55 pence, valid for a period of 48 months



Repayment:

In full out of the proceeds of any subsequent fundraise, or partial conversion into equity (on the same terms as available to participants in that event)



Purpose:

To be applied towards general working capital purposes.



The loan and its commercial terms were considered fair and reasonable, and approved by Directors who have no interest in the proposed transaction.



Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Yes they did Bradleybear

As a LTH I’ve built my position and the drill bit will decide my fate so there was no reason to sell.

I’m in this to make big money or loose my investment - there’s no in between.

I know the risks involved.

My negatively was for good reason wouldn’t you agree ? Or have you still got your head stick in the sand ?!

Zebra04 Premium Member
Posted in: PRD
Posts: 205
Price: 4.85
No Opinion
RE: Hmmm. Over 270k in buys12 Feb 2020 17:36

@mrmm have you not been here long?. The plan was always to give away equity in individual projects to help fund them, as opposed to an equity raise on the market.

We own 75% of the morrocon license, we can give away some equity in the license to get someone else to fund the drill. Diluting individual projects is much better than diluting the overall company and shareholders.

When it comes to purchasing fram, if that were to happen then the co2 project has been a success. The 4million required can be paid in installments over a period of time as revenues bump up from co2. The 1million released from morroco can also go towards purchasing fram.

We're 2 years post ipo, with only 7% dilution

And you thought that there wouldn’t be a placing and that they only diluted us by 8%. since IPO.

Patience needed

I’m still ultra bullish about all our projects but unlike some I like to keep it real and not bury my head in the sand like most people on here.

I tell it how it is and if I’m not happy about how things are going I will let everyone know even if the herd don’t wanna hear it.

Pack mentality on a bb is no good so it’s good for a contrarian to express himself. I’m all for people posting anything negative because I can look into it and decide for myself.

You need to re-evaluate all the time to make sure you are happy with your investment.

That’s all I’m doing and the fact that I’m
Still posting tells you that nothing has changed except we got heavily diluted recently.

We definitely need some good news otherwise these placing shares will take forever to clear and we will still be at this price come spud.

Short term pain for hopefully long term gains.

Paul has said a lot of things Incase you forgot , like not diluting us in the listed co and doing it in another co or by creative funding etc etc .

Don’t get me started - you just keep putting your buy recs up regardless of how the share price is reacting.

You come across as a ramper / trader if you ask me. I’m here for balance and it’s much needed - you thought I was deramping about funds being raised and you found out the hard way that I was absolutely 100% right with my thoughts.

FACT

So do yourself a favour and put me on ignore if you don’t wanna hear the truth

;)

Just as well I don’t care what you think then isn’t it

:)

I hope you got some unexpected good news for us lined up for when the new shares come to market - you owe all your loyal LTH (BIG TIME)

Let’s see if you know how to promote the company at such a vital time as well ..,,

Cheers

80p -£2.40 (as in prospectus on company’s website).

Nothing else

Jorc due in q1

Morocco - secure an option on a drill rig on attractive commercial terms in order to be able to use as leverage to attract finance from a variety of possible sources to drill its primary gas prospect in the Guercif Licence;

I’d like to know how many shares management bought in the placing .

Paul must have spoken with Macey so it’s interesting to know that a possible farm in still might happen ?!

If we get a partner we should have a multi well drilling campaign :)

We will buy you out and work on full field development.

We hold all the aces - Massey ar3 the only supplier of C02 in Trinidad and we have exclusivity. Paul played an absolute blinder getting that and means everyone has to work with PRD not Cerp

Morocco:-

There are no signature bonuses but produc on bonuses in the form of cash payments exist with a maximum one­off payment of US$5,000,000 on production on greater than 30,000 BOE/day. A discovery bonus of US$1,000,000 is also payable.

Original oil in place estimates for the Inniss-Trinity field varies between 68 million barrels (Texaco 1973), 150 million barrels (Gaffney Cline CPR for FRAM Exploration Trinidad Ltd (“FRAM”) 2011) and 89 million barrels (SLR Consulting CPR for the Company 2018).

Assuming the AT-4 Block Pilot CO2 EOR were to be replicated throughout the field, management’s estimates of potentially recoverable resources for field-wide CO2 EOR range from 8.12 million barrels to 15.62 million barrels based on the more recent original oil in place estimates in the CPR’s.

Following initial results of the AT-4 Block Pilot CO2 EOR, including history matching production performance with the various estimates of oil in place, the Company will be in a better position to commission an updated independent CPR to address resources and to narrow down the currently wide range of estimates for oil in place that may be attributed historically to the exclusion of moderate quality reservoir intervals that may respond well to being swept by a C02 flood.

Data collected from monitoring the AT-4 and AT-5X wells during injection and production will help assess the potential for reservoir communication and are required for planning the upscaling of operations to a full-field C02 EOR Project.

That’s what Paul wants