Member Info for SmartPunter

Yes it was broken at the time of the previous RNS, hence the mention of slowly removing the rig. Because.. they couldn't.

Good to see an article that actually interrogates the whys and wherefores of the project and its advantages.

Part 2.

So multiple options here, but unusual to be around a year away from DFS and securing option commitments already for project funding, for what should be half of the equity part of the funding required.

That is just the financials, the strategic benefit of this is very significant and hugely de-risks Phalaborwa. I remain convinced RBW's plan is to set up in-country RE Sulphate production facilities, then ship output to a central RE Oxide facility, at a yet to be chosen location in the USA, which will be very strategic for RBW and for Western World Rare Earth metal supply. GB has as good as said this in his interviews and statements.

Perfect Choice8 Nov '23 - 22:38 - 3995 of 3997

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There will be no change in shareholdings. For a start this is a future option yet to be invoked but now available to TechMet. The period to invoke the option is time bound and the RNS states "dependent on the net present value set out in the definitive feasibility study for the project" and "is executable for three months following receipt of a credit approved term sheet for construction debt". So that means the option can be applied when the DFS is completed (currently stated by the end of H2 CY 2024) and the funding requirements are fully defined ready for investment sources to secure that funding.

What TechMet are getting for this option is a direct holding of Phalaborwa itself, not shares in RBW , as per statement "US$50 million to take direct stake in the Phalaborwa project in South Africa"

That $50M is roughly half of the total equity element for funding construction of Phalaborwa, the equity element being around a third of total investment cost required, the rest being debt based funding to be paid back to financial providers from revenues gained, as is typical. GB states this in the brief interview you can see at Https://www.proactiveinvestors.co.uk/companies/news/1032442/rainbow-rare-earths-takes-huge-de-risking-step-with-techmet-deal-1032442.html where at 4 minutes into the video, he states debt will be "60 odd percent of the project, circa two thirds debt and the balance would be equity" for which TechMet in invoking this option would provide half of what is required (the $50M representing 16% of total $295M capital expenditure).

So with this option assumed to be invoked when the time comes to secure all project funding, RBW is only now looking for a further £50M, or about that, equity based funding, plus project debt financing (usually from banks, major financial provider, etc) for the balance.

Normally such equity based element of project funding may be through shares issued for that part of funding, but in this case it does not apply as TechMet are effectively buying part of Phalaborwa (so they will receive a future proportion of income as a result).

However there are 2 benefits, one being lower volume of further shares to be issued to get Phalaborwa underway, the other being it is only Phalaborwa, so other future RBW projects (like Uberaba in Brazil and the % of that RBW could own, I'm expecting 50%) do not feed into what TechMet will own.

Saying that, there is an option for TechMet to change direct ownership to shares, as the RNS states "Rainbow has also granted TechMet a put option to exchange the direct stake in the project for shares in the listed entity at the fair market value of the underlying Phalaborwa stake for a period of two years from the commercial completion of the Phalaborwa project, or at any time in the event of a change in control of Rainbow".

So multiple options here, but unusual to be around a year away from DFS and securing option c

Https://youtu.be/H6EkOsMnbBw?si=dVyBSOV85wLbwkV9

Yes, there is quite a few in different countries.

This is normal, you need a company to operate in each jurisdiction.

>>Giving shares in RBW for a Phal investment, how does that stand with regards to Uber I wonder

I think the investment and share is only for Phal subsidiary, therefore would not dilute Umber or other projects..

Thanks from the Talking Total Boll*x Department, Tony.

The long term trend is >> 39p

George opinioned that institutions will invest after proof of meta/oxide production.

I see this funding as a sign that we can get a loan at DFS in March or even sooner. Certainly a year pause for funding raise in the current timetable seems over blown.

This would bring production to 2025, a year earlier.

This funding from the US government is at a MCAP of between $151 and $333 million.

Current mcap is $100m, guaranteeing funding at between 50% and 200% above the current share price. All other funding will be via debt.

This protects shareholders from dilution all the way up to the 39p target price of production.

Remarkable deal.

All that is needed is the confirmation that the K-TECH technology works.

Next, the Brazilian stack and more round the world

Yah, another bluecday

Millionorw buys than sells tod. Should close up at the auction.

Lots of buys for the past few weeks.

Probably stick to proving and expanding the discovery.

The helium in the drilling mud means there is gas there.

Nothing else.

It's no guide to commercially quatities at all.

Yes, this forum is full of pointless discussions

CrustyPete

Yes lots of things might happen , none of which you have any idea which may happen.

Helium is a mineral according to the Tanzania Mining Act.

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://cdn-ceo-ca.s3.amazonaws.com/1funjk8-Helium_One_Initiation_note_Final_14_Dec_2020_RB2.pdf&ved=2ahUKEwj2q9yv6LGCAxUHJsAKHR3XCiUQFnoECBsQAQ&usg=AOvVaw3dhBoWDG_UwbTinTHPq01_

The issue was discussed two years ago.

Helium is not petroleum.

HE1 clarified the taxation situation at that time.

There will be a liquidation and separation plant , its modular and built remotely. Costs about 50-100m .

Since when has Helium required a GSA? its classified as a mineral, it needs a mining license.

You do not need infrastructure to exploit the helium. It can be transported by tanker. It is not natural gas., its worth 200 times as much and is much lighter, one road going vehicle can move $500,000 worth of gas. Two per week? Two per day?