REG - Rainbow Rare Earths - Private Placement Update

Rainbow Rare EarthsAnnouncement

04/10/2023 12:30

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RNS Number : 6986O  Rainbow Rare Earths Limited  04 October 2023

4 October 2023

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Private Placement Update

Further to the announcement of the private placement to raise £4.5 million
released on 27 September 2023, the Company is hereby correcting the following
information:

The Placing proceeds include:

·    £0.63 million received from existing shareholder Pella Ventures
Limited ("Pella") (the announcement dated 27 September 2023 stated £0.54
million);

·    £0.54 million received from existing shareholder TechMet Limited
(the announcement dated 27 September 2023 stated £0.63 million); and

·    £3.33 million received from other investors, including £0.24
million from other members of Rainbow's Board of Directors and Senior
Management.

Impact on total voting rights and admission

Of the 30 million Ordinary Shares to be issued under the Placing, 4,213,459
Ordinary Shares to be issued to Pella are subject to the approval of
shareholders at the AGM to be held in November 2023 (the "Conditional
Shares").

An application has been made for the initial 25,786,541 Ordinary Shares to be
issued pursuant to the Placing (the "Unconditional Shares") 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 ("First Admission").
It is expected that First Admission will become effective and that dealing in
the Unconditional Shares will commence on 5 October 2023.  The Unconditional
Shares will rank pari passu with the existing Ordinary Shares.  Following
Admission of the Unconditional Shares, the Company will have 624,645,196
Ordinary Shares in issue, which 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.

It is expected that admission of the Conditional Shares will become effective
and that dealing in the Conditional Shares will commence on or around 4
December 2023 ("Second Admission") following the AGM, and an application will
be made for the Conditional Shares 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 once shareholder approval has been granted.  The
Conditional Shares will rank pari passu with the existing Ordinary Shares.

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

                                    Detlir Elezi

 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 stacks that
occur as the by-product of phosphoric acid production, with the original
source rock for both deposits being a hardrock carbonatite. Rainbow will use a
proprietary separation technique developed by and in conjunction with its
partner K-Technologies, Inc., which simplifies the process of producing
separated rare earth oxides (versus traditional solvent extraction), leading
to cost and environmental benefits.

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 less than 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

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