Last checked at 25 Jun 2021 07:00
Rainbow Rare Earths Limited
("Rainbow" or the "Company")
(LSE: RBW)
25 June 2021
Issue of consideration shares for Phalaborwa Rare Earths Project
Rainbow Rare Earths Ltd announces that the Company has issued a total of 1,229,883 new ordinary shares of no par value ('Ordinary Shares') to Bosveld Phosphates (Pty) Ltd to settle the US$250,000 consideration due under the Phalaborwa co-development agreement originally announced on 3 November 2020.
Following this share issue a further US$250,000 is payable by Rainbow under the co-development agreement on 18 December 2021 in either cash or shares at the election of Bosveld Phosphates (Pty) Ltd.
The 1,229,883 new Ordinary Shares will 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. Admission of the Ordinary Shares to trading is expected to commence on 30 June 2021.
The Company's enlarged issued share capital will be 476,411,434 Ordinary Shares. The Company has no treasury shares. This figure of 476,411,434 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 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.