Last checked at 14 Apr 2021 17:12
Rainbow Rare Earths Limited
("Rainbow" or the "Company")
(LSE: RBW)
14 April 2021
Market Update
Rainbow Rare Earths Ltd has received notification from the Government of Burundi of a temporary suspension on the export of concentrate produced from trial mining and processing operations at its Gakara Project in Burundi ("the Project"). The notification was received by Rainbow's operating subsidiary, Rainbow Mining Burundi SM, from the Ministry of Hydraulics, Energy and Mines of the Republic of Burundi ("the Ministry") on 12 April 2021.
Whilst this development does not impact on Rainbow's ongoing exploration, trial mining and processing operations at the Project, which continue to progress in line with expectations, the Company will not ship concentrate until this issue is resolved. Rainbow is working in cooperation with the Ministry to seek further information and an expeditious resolution to this issue and will update the market in due course. Due to the nature of the trial mining operations this is not expected to have a material impact on the Company's short term cash flow projections, which envisage an ongoing investment program in Burundi to fully define the opportunity for a large-scale commercial mining operation.
George Bennett, CEO, said: "Whilst we are currently uncertain of the origins of this development in Burundi, I am in Burundi, undertaking ongoing, constructive discussions with the Ministry and other stakeholders to resolve this issue and allow exports to recommence. Whilst we have suspended the shipment of concentrate from Gakara, we plan to continue to conduct exploration, trial mining and processing activities at the Project and remain committed to a swift resolution to this issue, in cooperation with the Government and other related stakeholders.
Rainbow's Phalaborwa Project in South Africa remains on track and we continue to make good progress and expect to announce the final drilling results in the coming days."
**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 approximately 35 million tonnes of gypsum tailings stacked in unconsolidated dumps derived from historic phosphate hard rock mining, containing rare earth elements with an initial estimated average in situ grade of 0.5% TREO, based on previous sampling campaigns, of which +/- 30% comprises high-value NdPr. 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.