Rainbow Rare Earths Limited Market Update (5387D)
29 Junio 2021 - 10:14AM
UK Regulatory
TIDMRBW
RNS Number : 5387D
Rainbow Rare Earths Limited
29 June 2021
Rainbow Rare Earths Limited
("Rainbow" or the "Company")
(LSE: RBW)
29 June 2021
Market Update
In anticipation of the commencement of negotiations with the
Government of Burundi next week, Rainbow Rare Earths Ltd has
received notification from the Government of Burundi of a temporary
suspension of trial mining and processing operations at its Gakara
Project in Burundi ("the Project") whilst these negotiations
continue. The notification was received by Rainbow's operating
subsidiary, Rainbow Mining Burundi SM ('RMB'), from the Ministry of
Hydraulics, Energy and Mines of the Republic of Burundi ("the
Ministry") on 29 June 2021.
George Bennett, CEO, is due to arrive in Burundi on Monday 5
July 2021 for discussions with the Ministry relating to the
suspension of exports and the mining convention currently in place
between the Government of Burundi and RMB.
Due to the nature of the trial mining operations at the Project
this is not expected to have a material impact on the Company's
short term cash flow projections, which envisage an ongoing
investment program in Burundi. The majority of local staff have
been placed on furlough and short-term cash requirements in Burundi
minimised. RMB currently holds approximately 420t of concentrate
available for export which is expected to provide funding for the
re-commencement of operations once permitted.
George Bennett, CEO, said: "I am looking forward to returning to
Burundi to undertake constructive discussions with the Ministry and
other stakeholders to resolve this issue and allow both operations
and exports to recommence and achieve a win-win outcome for all
stakeholders. The temporary suspension of mining operations does
not increase the expected near term cash outflows for the business.
Rainbow's Phalaborwa Project in South Africa remains on track and
we continue to make good progress."
**ENDS**
For further information, please contact:
Rainbow Rare George Bennett
Earths Ltd Company Pete Gardner +27 82 652 8526
SP Angel Corporate Ewan Leggat
Finance LLP Broker Charlie Bouverat +44 (0) 20 3470 0470
--------- ------------------- --------------------------------------
Flagstaff Strategic Tim Thompson +44 (0) 207 129 1474
and Investor Fergus Mellon rainbowrareearths@flagstaffcomms.com
Communications
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Notes to Editors:
Rainbow's strategy is to become a globally-significant producer
of rare earth metals. NdPr 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 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
dumps derived from historic phosphate hard rock mining. High value
NdPr 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 produces one of the
highest-grade 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 over
approximately 19.5% of the contained TREO and 85% of the value of
the concentrate.
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END
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June 29, 2021 11:14 ET (15:14 GMT)
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