REG - Rainbow Rare Earths Ecora Resources PLC - Completion of Ecora Royalty Transaction

Rainbow Rare EarthsAnnouncement

25/09/2024 07:00

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RNS Number : 5142F  Rainbow Rare Earths Limited  25 September 2024

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         +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 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
(http://www.rainbowrareearths.com)

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