REG - Rainbow Rare Earths - Exercise of Share Options

Rainbow Rare EarthsAnnouncement

29/04/2022 07:00

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RNS Number : 7843J  Rainbow Rare Earths Limited  29 April 2022

 

 

29 April 2022

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Exercise of Share Options

 

Rainbow Rare Earths announces that the Company has allotted a total of
1,718,987 new ordinary shares of no par value ('Ordinary Shares') at a price
of 5.28p per share to the Australian Special Opportunity Fund, LP on receipt
by the Company of a valid notification to exercise share options.  Following
this exercise, the Australian Special Opportunity Fund, LP holds a further
2,000,000 share options with an exercise price of 5.28p per share, which can
be exercised until 24 January 2023.

The new Ordinary Shares rank pari passu with the Company's existing issued
Ordinary Shares and application has been made for the Ordinary Shares to be
admitted to the Main Market of the London Stock Exchange.  Dealings are
expected to commence on 5 May 2022.

The Company's enlarged issued share capital will be 524,405,810 Ordinary
Shares. The Company has no treasury shares. This figure of 524,405,810
Ordinary Shares may be used by shareholders in the Company as the denominator
for the calculations by which they will determine if they are required to
notify their interest in, or a change in their interest in, the share capital
of the Company under the FCA's Disclosure and Transparency Rules.

**ENDS**

 

For further information, please contact:

 

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

                                          Pete Gardner
 SP Angel Corporate Finance LLP  Broker   Ewan Leggat        +44 (0) 20 3470 0470

                                          Charlie Bouverat
 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:

Rainbow's strategy is to become a globally significant producer of rare earth
metals. Nd/Pr and Dy 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 Nd/Pr and Dy into deficit.

 

The Phalaborwa Rare Earths Project, located in South Africa, comprises an
Inferred Mineral Resource Estimate of 38.3Mt at 0.43% TREO contained within
gypsum tailings stacked in unconsolidated stacks derived from historic
phosphate hard rock mining. High value NdPr oxide represents 29.1% of the
total contained rare earth oxides, with economic Dysprosium and Terbium oxide
credits enhancing the overall value of the rare earth basket in the stacks.
The rare earths are contained in chemical form in the gypsum stacks, which is
expected to allow high-value separated rare earth oxides to be produced with
lower operating costs than a typical rare earth mineral project.

 

The Company's Gakara Project in Burundi has produced one of the highest-grade
rare earth concentrates in the world (typically 54% total rare earths oxides
("TREO")) through trial mining operations. The Gakara basket is weighted
heavily towards Nd/Pr, which account for approximately 19.5% of the contained
TREO and 85% of the value of the concentrate. The Gakara project is currently
on care and maintenance at the request of the Government of Burundi.

 

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