REG - Rainbow Rare Earths - Rainbow enters Rare Earths Extraction Agreement

Rainbow Rare EarthsAnnouncement

22/08/2022 07:00

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RNS Number : 6961W  Rainbow Rare Earths Limited  22 August 2022

 

22 August 2022

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Rainbow enters into Rare Earths Extraction Master Agreement

 

Rainbow Rare Earths (''Rainbow'') announces that it has entered into a Master
Agreement ("Agreement") with OCP S.A. ("OCP"), the Moroccan world leading
producer of phosphate products, and Mohammed VI Polytechnic University
("UM6P"), a Moroccan university with a strong focus on science, technology and
innovation, (together, the "Parties") to further investigate and develop the
optimal technique for the extraction of rare earth elements from
phosphogypsum.

 

Phosphogypsum contains rare earths as a by-product of phosphoric acid
production. OCP together with the innovative research carried out by UM6P,
have built up significant IP assets, know-how and expertise in the field of
phosphogypsum processing. This provides a synergistic opportunity for joint
development with Rainbow, given Rainbow's expertise and intellectual property
on rare earths extraction and processing gained from work carried out to date
at Phalaborwa completed with the separation technolog licensed from
K-Technologies, Inc. ("K-Tech") , the process technologies company based in
Florida, USA. OCP and UM6P will contribute with their respective expertise,
including adapted complementary separation technologies.

 

The Parties intend to develop the optimal route for the extraction of rare
earths from phosphogypsum, and the subsequent processing of these rare earths
into separated elements. The Parties intend to work together on the
development of pilot and industrial-scale extraction of rare earths from
phosphogypsum.

 

Rainbow Rare Earths CEO, George Bennett, commented: "We are delighted to enter
this Agreement with such innovative partners and believe their significant
knowledge of phosphogypsum processing fits well with our own technical
expertise in rare earths processing.

 

Recognising the enormous potential of phosphogypsum as a valuable source of
rare earths, our team is focused on securing opportunities for both
collaboration and expertise sharing, as well as gaining access to new supply
as shown by our recently announced agreement with a diversified chemicals
group in South Africa.

 

The successful global transition to clean energy is reliant on a considerable
increase in supply of critical materials such as NdPr, required in permanent
magnet technology, and we are therefore continually exploring the best way of
producing rare earths responsibly from secondary sources, which removes
significant time, risk and cost from the overall project timeline."

 

Market Abuse Regulation ("MAR") Disclosure

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

**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)

 

About Mohammed VI Polytechnic University

Mohammed VI Polytechnic University is a pan-African hub of education,
research, innovation and entrepreneurship, aspiring to become a solid bridge
of knowledge between Morocco, Africa and the world.

 

Located in the "Mohammed VI Green City" in Benguerir, with branches in Rabat
and Laayoune, UM6P applies a "learning by doing" approach and develops sound
partnerships with world-wide class universities and industries, to promote
leadership and training in focused research areas.

 

 UM6P specializes in different scientific fields including industrial
management, mining, chemistry, engineering, agriculture, solar and renewable
energy as well as social sciences.

About OCP S.A.

OCP is a major global company specializing in the mining, refining,
processing, manufacturing, commercialization, marketing, and development of
rock phosphate, phosphoric acid and phosphate-based fertilizers.

 

OCP and its Group has developed within its different departments and
affiliates, significant intellectual propriety assets, know-how and expertise
in innovative processes in the phosphate value chain, fertilizers and in the
field of the Project.

 

Notes to Editors:

Rainbow's strategy is to become a globally significant producer of rare earth
metals. NdPr 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 NdPr 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 NdPr, 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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