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Rainbow Rare Earths Limited announced on 25 September 2024 the completion of its royalty financing agreement with Ecora Resources PLC. Rainbow received US$8.5 million in royalty consideration, net of US$229k transaction costs, in addition to approximately US$1.5 million from an associated July share subscription, totaling US$10 million in gross funding. These funds are designated for the Phalaborwa project's Definitive Feasibility Study and company financing requirements up to June 2025.
| Date | 25 Sept 2024 |
| Time | 07:00:08 |
| Category | Corporate updates |
| ID | 5142F |
25 September 2024
Rainbow Rare Earths Limited
("Rainbow" or "the Company")
LSE: RBW
Completion of Ecora Royalty Agreement Transaction
Further to the announcement on 1 July 2024 that Rainbow has entered into a royalty financing and share subscription agreement with Ecora Resources PLC ("Ecora"), Rainbow is pleased to announce that all conditions precedent required for the payment of the US$8.5 million royalty consideration have been met and the funds, net of US$229k transaction costs, have been received by Rainbow.
This is in addition to the funds raised by the associated share subscription which completed in July and delivered an additional ca. US$1.5 million to Rainbow, for a total gross funding of US$10 million.
As previously announced, the funds will be used to:
1. deliver the completion of the Definitive Feasibility Study on the Phalaborwa project; and
2. cover all other Company financing requirements up to June 2025.
For further information, please contact:
|
Rainbow Rare Earths Ltd |
Company |
George Bennett Pete Gardner |
+27 82 652 8526
|
|
|
IR |
Cathy Malins |
+44 7876 796 629 |
|
Berenberg |
Broker |
Matthew Armitt Jennifer Lee
|
+44 (0) 20 3207 7800 |
|
Stifel
|
Broker |
Ashton Clanfield Varun Talwar
|
+44 20 7710 7600 |
|
Tavistock Communications |
PR/IR |
Charles Vivian Tara Vivian-Neal |
+44 (0) 20 7920 3150 |
Notes to Editors:
About Rainbow:
Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the permanent magnet rare earth elements neodymium and praseodymium, dysprosium and terbium.
The Company is focused on the development of the Phalaborwa Rare Earths Project in South Africa and the earlier stage Uberaba Project in Brazil. Both projects entail the recovery of rare earths from phosphogypsum that occurs as the by-product of phosphoric acid production, with the original source rock for both deposits being a hardrock carbonatite.
The Phalaborwa Preliminary Economic Assessment has confirmed strong base line economics for the project, which has a base case NPV10 of US$627 million, an average EBITDA operating margin of 75% and a payback period of < two years.
More information is available at www.rainbowrareearths.com