Issue of Shares to TechMet

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

Pete Gardner

+27 82 652 8526

+44 (0) 771 779 4251

SP Angel Corporate Finance LLP

Broker

Ewan Leggat

Charlie Bouverat

+44 (0) 20 3470 0470

Flagstaff Strategic and Investor Communications


Tim Thompson

Fergus Mellon

+44 (0) 207 129 1474

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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