REG - Rainbow Rare Earths - Grant of Share Options

Rainbow Rare EarthsAnnouncement

06/06/2023 16:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230606:nRSF8499Ba&default-theme=true

RNS Number : 8499B  Rainbow Rare Earths Limited  06 June 2023

6 June 2023

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Grant of Share Options

Rainbow Rare Earths announces that pursuant to its Long Term Incentive Plan
("LTIP") approved in January 2021 its Board of Directors, on the
recommendation of the Remuneration Committee, has approved the grant of 1.4
million nil priced share options to employees, including 400,000 options
issued to Dave Dodd who is a Person Discharging Managerial Responsibility of
the Company.

The options will vest in equal tranches over three years: one third after 12
months, one third after 24 months and one third after 36 months; there are no
other vesting conditions.

In aggregate the share options granted above represent 0.23% of the existing
issued share capital of the Company.  Following this award the Company has
19,799,400 share options in issue under the existing share option schemes,
representing 3.3% of the existing issued share capital of the Company,
including 8,258,000 nil priced options issued under the LTIP and 11,541,400
options with a weighted average exercise price of 13.33 pence per share under
the unapproved share option plan.

Notification and public disclosure of transactions by persons discharging
managerial responsibilities and persons closely associated with them

 1   Details of the person discharging managerial responsibilities/person closely
     associated
 a)  Name                                                         Dave Dodd
 2   Reason for the notification
 a)  Position/status                                              PDMR
 b)  Initial notification/ Amendment                              Initial Notification
 3   Details of the issuer, emission allowance market participant, auction
     platform, auctioneer or auction monitor
 a)  Name                                                         Rainbow Rare Earths Limited
 b)  LEI                                                          213800HONYSAXTG6KS11
 4   Details of the transaction(s): section to be repeated for (i) each type of
     instrument; (ii) each type of transaction; (iii) each date; and (iv) each
     place where transactions have been conducted

 a)  Description of the financial instrument, type of instrument  Ordinary shares of no par value

     Identification code

                                                                  GG00BD59ZW98
 b)  Nature of the transaction                                    Award of option to purchase ordinary shares of the Company. Following the

                                                            transaction, Mr. Dodd holds 1,650,000 options to purchase ordinary shares.

 c)  Price(s) and volume(s)                                       Price(s)  Volume(s)

                                                            Nil       400,000

 d)  Aggregated information

     Aggregated volume                                            400,000

     -      Price                                                 Nil

 e)  Date of the transaction                                      6 June 2023

                                                                  Note: the Company is not considered in a close period at the time of this
                                                                  transaction.

 f)  Place of the transaction                                     Outside a trading venue

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

400,000

 

Nil

e)

Date of the transaction

 

6 June 2023

Note: the Company is not considered in a close period at the time of this
transaction.

 

f)

Place of the transaction

Outside a trading venue

 

 

For further information, please contact:

 

Rainbow Rare Earths Ltd
Company             George Bennett

Pete Gardner
                                   +27 82
652 8526

 
 
Cathy Malins (IR)
+44 7876 796 629

 
        cathym@rainbowrareearths.com

 

Berenberg
Broker                  Matthew Armitt

 
        Jennifer
Lee
+44 20 3207 7800

 

Tavistock Communications
PR/IR                     Charles Vivian

Tara Vivian-Neal
+44 (0) 20 7920 3150

 
         rainbowrareearths@tavistock.co.uk

 

 

Notes to Editors:

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 magnet rare earth elements neodymium and
praseodymium ("NdPr"), dysprosium and terbium.

The Phalaborwa Rare Earths Project, located in South Africa, comprises a total
Mineral Resource Estimate of 30.4 Mt at 0.44% TREO contained within
unconsolidated gypsum stacks derived from historic phosphate hard rock mining.
High value NdPr oxide represents 29.0% 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. Rainbow will use a
proprietary separation technique developed by its partner K-Technologies, Inc.
for the plant at Phalaborwa, which simplifies the process of producing
separated rare earth oxides (versus traditional solvent extraction), leading
to cost benefits, as well as being more environmentally friendly.

The Phalaborwa Preliminary Economic Assessment has confirmed strong base line
economics for the project, which has a base case NPV(10) of US$627 million 1 
(#_ftn1) , an average EBITDA operating margin of 75% and a payback period of
< two years. Pilot plant operations will commence in 2023, with the project
expected to reach commercial production in 2026, just five years after work
began on the project by Rainbow.

 1  (#_ftnref1) Net present value using a 10% forward discount rate

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  DSHUNRVROAUNRAR