Last checked at 7 Jul 2021 07:00
Rainbow Rare Earths Limited
("Rainbow" or the "Company")
(LSE: RBW)
7 July 2021
Â
Issue of Share Options
Rainbow Rare Earths Ltd announces that the board of directors, on the recommendation of the Remuneration Committee, has approved the grant of share options over new ordinary shares of no par value each in the Company ('Ordinary Shares') under the existing share option plan with an exercise price of 18 pence per new Ordinary Share, representing a 22% premium to the closing share price of 14.75 pence per share on 5 July 2021.
A total of 500,000 options over new Ordinary Shares have been issued to J Peter Pham, the recently appointed non-executive director, as part of his overall remuneration package. These options vest immediately on issue with a term of 10 years. As a director, Mr Pham is a Person Discharging Managerial Responsibility ('PDMR') of the Company.
In addition, a further 800,000 options over new Ordinary Shares have been issued to key personnel (not PDMRs), which will vest in three tranches after 12 months, 24 months and 36 months, with a term of 10 years, subject to the personnel remaining employees of the group.
In aggregate the above grants of options represent 0.3% of the existing issued share capital of the Company. Prior to this award the Company had 7,991,400 share options in issue under the existing share option scheme, representing 1.7% of the existing issued share capital of the Company, with a weighted average exercise price of 12.19 pence per share. In addition, the Company had 3,708,000 nil priced options issued under the LTIP scheme in January 2021.
Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them
1 | Details of the person discharging managerial responsibilities/person closely associated | |||||
a) | Name | J Peter Pham | ||||
2 | Reason for the notification | |||||
a) | Position/status | PDMR | ||||
b) | Initial notification/ Amendment | Initial Notification | ||||
3 | Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor | |||||
a) | Name | Rainbow Rare Earths Limited | ||||
b) | LEI | 213800HONYSAXTG6KS11 | ||||
4 | Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted  | |||||
a) | Description of the financial instrument, type of instrument  Identification code | Ordinary shares of no par value each    GG00BD59ZW98 | ||||
b) | Nature of the transaction  | Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Pouroulis holds 1,402,000 options to purchase ordinary shares. | ||||
c) | Price(s) and volume(s) Â |
| ||||
d) | Aggregated information  Aggregated volume  - Price  |   500,000  £0.18 | ||||
e) | Date of the transaction  | 6 July 2021 Note: the Company is not considered in a close period at the time of this transaction.  | ||||
f) | Place of the transaction | London Stock Exchange (XLON) | ||||
Â
**ENDS**
For further information, please contact
Rainbow Rare Earths Ltd | Company | George Bennett Pete Gardner | +27 82 652 8526 Â |
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 |
Â
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 Phalaborwa Rare Earths Project, located in South Africa, comprises an Inferred Mineral Resource Estimate of 38.3Mt at 0.43% TREO contained within gypsum tailings stacked in unconsolidated dumps derived from historic phosphate hard rock mining. High value NdPr oxide represent 29.1% of the total contained rare earth oxides, with economic Dysprosium and Terbium oxide credits enhancing the overall value of the rare earth basket contained in the stacks. The rare earths are contained in chemical form in the gypsum dumps, which is expected to deliver a higher-value rare earth carbonate, with lower operating costs than a typical rare earth mineral project.
The Company's Gakara Project in Burundi, which produces one of the highest-grade concentrates in the world (typically 54% total rare earths oxides ("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 85% of the value of the concentrate.
Â