Last checked at 2 Feb 2017 15:40
FOR IMMEDIATE RELEASE
2 February 2017
Rainbow Rare Earths Ltd ('Rainbow' or 'the Company')
Issue of Equity
Rainbow, the rare earth element mining company focussed on the exploration and development of the Gakara project in East Africa, is pleased to announce that has allotted a total of 2,600,665 new ordinary shares of no par value ('Ordinary Shares') at a price of 10p each. The Ordinary Shares were allotted in lieu of cash commission payable in connection with the placing of Ordinary Shares ('Fundraising') and admission of the Company's entire issued share capital the standard segment of the Financial Conduct Authority's official list and to trading on the main market of the London Stock Exchange on 30 January 2017.
The issue of the new Ordinary Shares means that the Company has reduced cash commission payments connected to the £6.5 million Fundraising to approximately £170,000, equivalent to an effective percentage rate of 2.6 per cent of the Fundraising.
The Company notes, in accordance with article 19(1) of the EU Market Abuse Regulation (EU/596/2014), Alexander Lowrie, a Non-Executive Director of the Company and a person discharging managerial responsibilities, has notified the Company that he will directly receive 380,126 new Ordinary Shares and persons closely associated with him will receive 499,999 new Ordinary Shares. Mr Lowrie's interest in the Company's ordinary share capital, including the interests of his connected persons, therefore increases to 4,963,459 representing 3.21 per cent. of the enlarged issued share capital. Mr Lowrie's shareholding of 3,658,459 is subject to restrictions on sale for 365 days from Admission as set out in the Placing Agreement summarised in the Company's Prospectus dated 25 January 2017 ('Prospectus').
Application will be made for the 2,600,665 new ordinary shares to be admitted to trading on the Official List and dealings are expected to commence on 7 February 2017.
Following this issue the enlarged issued share capital of the Company is 154,626,472 ordinary shares of no par value.
Further to the above, the Company wishes to update shareholders that the total number of shares under option or warrant is 7,114,031, rather than the figure of 6,692,400 contained in the Prospectus. The additional 421,631 securities are not held directly or indirectly by the PDMRs or their closely associated persons.
**ENDS**
For further information, please contact:
Rainbow Rare Earths Ltd | Martin Eales | Tel: +44 (0) 20 7494 8206 |
Hannam & Partners (Advisory) LLP | Neil Passmore, Brent Nabbs | Tel: +44 (0) 20 7907 8500 |
Daniel Stewart & Company Plc | Jonathan Brown, David Lawman, John Peat | Tel: +44 (0) 20 7776 6550 |
St Brides Partners Ltd | Lottie Brocklehurst, Susie Geliher | Tel: +44 (0) 20 7236 1177 |
Notes to Editors
Rainbow's focus is the Gakara Project in Burundi, one of the highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects globally. The Company has raised US$8 million to fast-track the fully permitted Gakara Project to production ahead of targeted first sales of concentrate by the end of 2017. Rainbow has a ten-year distribution and offtake agreement with multinational thyssenkrupp Raw Materials secured for the sale of 5,000 tpa of concentrate produced. The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand accounting for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines and electric vehicles.