REG - Rainbow Rare Earths - Issue of Shares to TechMet

Rainbow Rare EarthsAnnouncement

19/11/2021 10:30

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RNS Number : 9822S  Rainbow Rare Earths Limited  19 November 2021

FOR IMMEDIATE RELEASE

Rainbow Rare Earths Limited

("Rainbow" or the "Company")

(LSE: RBW)

19 November 2021

 

Issue of conditional 10 million new Ordinary Shares at 15p per share from
October 2021 placing

Rainbow is pleased to announce that, further to the placing announcement dated
13 October 2021 and the results of the Annual General Meeting ("AGM")
announced 18 November 2021, the 10 million new ordinary shares of no par value
each in the Company ("Ordinary Shares") conditionally placed with TechMet
Limited in the October 2021 placing have now been issued (the "Conditional
Shares").

TechMet Limited, a private industrial company that is building strategic
positions in world-class projects across the technology metals supply chain
and counts the U.S. International Development Finance Corporation (an agency
of the U.S. government that invests in overseas development projects) as a
major investor, subscribed for 15 million new Ordinary Shares in the placing
announced on 13 October 2021.  The initial 5 million new Ordinary Shares were
admitted to trading in October 2021, with a further 10 million new Ordinary
Shares to be admitted to trading subject to shareholder approval.  Such
approval was received at the Company's AGM held on 17 November 2021.

George Bennett, Chief Executive Officer of Rainbow, said:

"We are very encouraged by the strong support we received at our recent
fundraising and are pleased to issue the final 10 million Conditional Shares
from that placing now that shareholder approval has been obtained.  With its
stringent investment criteria and its goal to secure the critical metals for
the global technology revolution, we welcome the substantial investment by
TechMet, which counts the U.S. government as a major investor.

We believe that demand for rare earths required in permanent magnets is poised
for continued strong growth, as evidenced by the 85% increase in the price of
both Neodymium and Praseodymium oxide between November 2020 and September
2021.  With our diversified asset portfolio, which includes the exciting
near-term growth opportunity presented by the Phalaborwa Project in South
Africa, Rainbow is uniquely positioned to deliver into this growing market."

Total voting rights and Admission

An application has been made for the 10,000,000 Ordinary Shares issued
following shareholder approval at the AGM to be admitted to the Official List
(by way of a Standard Listing) and to trading on the London Stock Exchange
Plc's Main Market for listed securities ("Admission").  It is expected that
Admission will become effective and that dealing in the Conditional Shares
will commence on or around 25 November 2021.  The Conditional Shares will
rank pari passu with the existing Ordinary Shares.  Following Admission of
the Conditional Shares, the Company will have 521,811,434 Ordinary Shares in
issue.

The above figures of 521,811,434 Ordinary Shares may be used by shareholders
as the denominator for the calculations by which they will determine if they
are required to notify their interest in, or a change to their interest in,
the Company under the FCA's Disclosure, Guidance and Transparency Rules.

 

**ENDS**

For further information, please contact

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

                                                           Pete Gardner       +44 (0) 771 779 4251
 SP Angel Corporate Finance LLP                   Broker   Ewan Leggat        +44 (0) 20 3470 0470

                                                           Charlie Bouverat
 Flagstaff Strategic and Investor Communications           Tim Thompson       +44 (0) 207 129 1474

                                                           Fergus Mellon      rainbowrareearths@flagstaffcomms.com

 

Notes to Editors:

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

The Phalaborwa Rare Earths Project, located in South Africa, comprises an
Inferred Mineral Resource Estimate of 38.3Mt at 0.43% total rare earths oxides
("TREO") contained within gypsum tailings stacked in unconsolidated dumps
derived from historic phosphate hard rock mining.  High value Nd/Pr oxide
represent 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 contained in the stacks.  The rare earths are contained in
chemical form in the gypsum dumps, which is expected to deliver a higher-value
rare earth carbonate, 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
concentrates in the world (typically 54% TREO) through trial mining
operations.  The Gakara basket is weighted heavily towards Nd/Pr, which
account for over approximately 19.5% of the contained TREO and 85% of the
value of the concentrate.

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