Last checked at 22 Jan 2021 07:00
Rainbow Rare Earths Limited
("Rainbow" or the "Company")
(LSE: RBW)
22nd January 2021
Exercise of Share Options
Rainbow Rare Earths Ltd announces that the Company has allotted a total of 4,000,000 new ordinary shares of no par value ('Ordinary Shares') at a price of 5.28p per share to the Australian Special Opportunity Fund, LP on receipt by the Company of a valid notification to exercise share options. Following this exercise the Australian Special Opportunity Fund, LP holds a further 9,718,987share options with an exercise price of 5.28p per share, which can be exercised until 24th January 2023.
The new Ordinary Shares rank pari passu with the Company's existing issued Ordinary Shares and application has been made for the Ordinary Shares to be admitted to the Main Market of the London Stock Exchange. Dealings are expected to commence on 27th January 2021.
The Company's enlarged issued share capital will be 471,681,551 Ordinary Shares. The Company has no treasury shares. This figure of 471,681,551 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
**ENDS**
For further information, please contact
Rainbow Rare Earths Ltd | Company | George Bennett Pete Gardner | +27 82 652 8526
|
SP Angel Corporate Finance LLP | Broker | Ewan Leggat Charlie Bouverat | +44 (0) 20 3470 0470 |
Flagstaff Strategic and Investor Communications | Tim Thompson Fergus Mellon | +44 (0) 207 129 1474 rainbowrareearths@flagstaffcomms.com |
Notes to Editors:
Rainbow's strategy is to become a globally-significant producer of rare earth metals. NdPr are vital components of the strongest permanent magnets used for the motors and turbines driving the green technology revolution. Analysts are predicting demand for magnet rare earth oxides will grow substantially over the coming years, driven by increasing adoption of green technology, pushing the overall market for NdPr into deficit.
The Company's Gakara Project in Burundi, which produces one of the highest-grade concentrates in the world (typically 54% total rare earth oxide ("TREO")) through ongoing trial mining operations, is currently the only African producer of rare earths. The Gakara basket is weighted heavily towards NdPr, which account for over approximately 19.5% of the contained TREO and 80% of the value of the concentrate.
The Phalaborwa Rare Earths Project, located in South Africa, comprises approximately 35 million tonnes of gypsum resulting from historic phosphate hard rock mining, containing rare earth elements with an estimated average in situ grade of 0.6% TREO, based on previous sampling campaigns, of which 30% comprises high-value NdPr. The rare earths are contained in chemical form in the gypsum stacks, which is expected to deliver a higher-value rare earth carbonate, with lower operating costs than a typical rare earth mineral project.