REG - Rainbow Rare Earths - Economic Assessment for Uberaba Project in Brazil

Rainbow Rare EarthsAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250617:nRSQ0543Na&default-theme=true

RNS Number : 0543N  Rainbow Rare Earths Limited  17 June 2025

 

17 June 2025

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Rainbow and Mosaic commence Economic Assessment for the recovery of Rare
Earths from the Uberaba Project in Brazil

·    The Economic Assessment ("EA") will be carried out as a joint
collaboration with The Mosaic Company ("Mosaic"), the world's leading
producers and marketers of concentrated phosphate and potash crop nutrients

·    The EA will be based on an operation processing the phosphogypsum
from the Mosaic Uberaba phosphoric acid ("phosacid") plant at a rate of ca.
4.3 million tonnes per annum ("Mtpa"), being twice the size of Rainbow's
flagship Phalaborwa Project

·    The preliminary process flowsheet to recover the rare earth elements
("REE") for the EA is based on in-house test work performed by Mosaic, with
the support of Rainbow

·    The EA will be based on average grades measured from samples taken
from the Uberaba operation, which average 0.58% total rare earth oxides
("TREO") of which 24.5% represents high value neodymium and praseodymium
oxides (together "Nd/Pr"), with economic quantities of dysprosium ("Dy") and
terbium ("Tb")

NEWS RELEASE

Rainbow Rare Earths is pleased to announce that it has, along with Mosaic,
approved the budget and commenced work on an EA for the recovery of rare
earths from the Uberaba project in Brazil. The EA is intended to allow both
parties to understand the economics ahead of considering a partnership to
potentially replace the current non-binding MOU to realise this opportunity.

George Bennett, CEO of Rainbow, commented: "We are delighted to have made
significant progress with the commencement of a formal EA of the Uberaba
project, which reflects the strong collaboration between Rainbow and Mosaic
under our MOU. I would like to thank Mosaic's very competent and professional
team, who are working well with us on all aspects of the project, including
sampling / mineralogy, the test work required to define the flowsheet and
ongoing work to delineate the project feedstock.

Uberaba is an exciting project for Rainbow, given the technical similarities
with Phalaborwa; however, it represents a significantly larger economic
opportunity over the long-term due to the sheer scale of the planned annual
feed rate and the long-term nature of the underlying phosphate deposit. As at
Phalaborwa, we expect Uberaba to be a low-capital intensity project and a
low-cost source of the critical rare earths driving the green energy
transition and other advanced and emerging technologies."

Background to Uberaba

The Uberaba phosphogypsum contains valuable REE that occur as by-products of
the phosacid production operations on site and Rainbow's pioneering IP can be
applied to recover these REE.

The Uberaba material is similar in nature to Rainbow's Phalaborwa project in
South Africa in that it is based on a hard rock carbonatite phosphate deposit,
which is mined to initially produce a phosphate slurry feed that is then
processed into phosacid using sulphuric acid. This process delivers
phosphogypsum material that contains most of the REE present in the phosphate
slurry feed.

Assay work on samples from the Mosaic phosphogypsum has returned grades of
between 0.45% to 0.79% TREO, with Nd/Pr being 24.5% of the rare earths basket,
plus economic quantities of Dy and Tb. The average grade, which will be used
in the EA, is 0.58% TREO. The material has not been formally defined as a JORC
compliant REE resource to date.

The Economic Assessment

The EA envisages an operation processing ca. 4.3 Mtpa of phosphogypsum in two
ca. 2.15 Mtpa modules, which is around twice the annual size of Phalaborwa.

A flowsheet to recover the REE has been defined for the EA by test work as a
joint collaboration between Rainbow and Mosaic. The flowsheet receives
phosphogypsum from the Uberaba phosacid process facility and treats the
material for REE extraction. The chemically processed and cleaned
phosphogypsum stream is then returned to the Mosaic Uberaba process facility.

As at Phalaborwa, the EA is based on the establishment of a single
hydrometallurgical plant on site, which will refine the material into
separated rare earth oxides of +99% purity.

The EA will be based on an initial project life of 15 years. Due to the life
of mine of the underlying phosphate resource feeding the phosacid plant at
Uberaba, recovery of rare earths can be expected to extend for a far longer
period. The modest third-party costs of ca. US$230k to develop the EA will be
shared 50:50 between Rainbow and Mosaic.

 

 

For further information on Rainbow, please visit the Company's Curation
Connect showcase at: Curation Connect - Rainbow Rare Earths Showcase
(https://app.curationconnect.com/company/Rainbow-Rare-Earths-90903?utm_source=media&utm_campaign=media&utm_id=media)
or https://app.curationconnect.com/company/Rainbow-Rare-Earths-90903
(https://app.curationconnect.com/company/Rainbow-Rare-Earths-90903)

 

Contact details:

 

 Rainbow Rare Earths Ltd   Company  George Bennett         +27 82 652 8526

                                    Pete Gardner
                           IR       Cathy Malins           +44 7876 796 629

                                                           cathym@rainbowrareearths.com (mailto:cathym@rainbowrareearths.com)
 Berenberg                 Broker   Matthew Armitt         +44 (0) 20 3207 7800

                                    Jennifer Lee

 Stifel                    Broker   Ashton Clanfield       +44 20 7710 7600

                                    Varun Talwar

 Tavistock Communications  PR/IR    Charles Vivian         +44 (0) 20 7920 3150

                                    Tara Vivian-Neal       rainbowrareearths@tavistock.co.uk (mailto:rainbowrareearths@tavistock.co.uk)

 

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
pioneering the first commercial recovery of rare earth elements from
phosphogypsum that occurs as the by-product of phosphoric acid production.
These projects eliminate the cost and risk of typical rare earth projects,
which involve mining and the production of a rare earth concentrate that must
be chemically cracked to form a mixed rare earth carbonate before further
downstream processing. As such, Rainbow's projects can be brought into
production quicker and at a lower cost than traditional hard rock mining
projects.

The Company is focused on the development of the Phalaborwa Project in South
Africa and the earlier stage Uberaba Project in Brazil. Rainbow's process will
deliver separated rare earth oxides through a single hydrometallurgical plant
on site, with a focus on the recovery of neodymium, praseodymium, dysprosium
and terbium. These are critical components of the high-performance permanent
magnets used in electric vehicles, wind turbines, defence and exciting new
markets such as robotics and advanced air mobility.

The Phalaborwa updated interim economic study released in December 2024 has
confirmed strong base line economics for the project, which has a base case
NPV(10) of US$611 million. Given Phalaborwa is a chemical processing
operation, with its resource sitting at surface in a chemically cracked form,
it has a much lower operating cost than traditional rare earth mining
projects, and it is therefore estimated to be the highest margin rare earth
project in development today outside of China.

More information is available at www.rainbowrareearths.com
(http://www.rainbowrareearths.com/) and www.curationconnect.com
(http://www.curationconnect.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPUWCQUPAGAQ