Rainbow Rare Earths Limited Rainbow's 70% share in Phalaborwa confirmed (8641Y)
19 Enero 2022 - 1:00AM
UK Regulatory
TIDMRBW
RNS Number : 8641Y
Rainbow Rare Earths Limited
19 January 2022
19 January 2022
Rainbow Rare Earths Limited
("Rainbow" or "the Company")
LSE: RBW
Rainbow's 70% share in Phalaborwa confirmed
Rainbow Rare Earths, the rare earths company with assets in
South Africa and Burundi, today announces an amendment to the
Agreement for Co-Development (the "Agreement") of the 38.3Mt
Phalaborwa Rare Earths Project (the "Project" or "Joint Venture")
with Bosveld Phosphates (Pty) Ltd ("Bosveld").
When the Joint Venture was announced in November 2020, a
mechanism was included in the Agreement to allow for Rainbow's
Joint Venture ownership to vary from 60% to 85%, dependent on
results of the Pre-Feasibility Study. The amended agreement, signed
on 18 January 2022, confirms Rainbow's shareholding in the Joint
Venture at 70%, with the remaining 30% held by Bosveld. This
amendment removes any downside uncertainty concerning the potential
to dilute the Company's share within the Joint Venture, as well as
assuring Rainbow's material share in future revenue.
Technical work carried out to date has confirmed an Inferred
Mineral Resource Estimate at Phalaborwa of 38.3 million tonnes at
0.43% total rare earth oxides ("TREOs") contained within gypsum
tailings stacked in unconsolidated dumps, derived from historic
phosphate hard rock mining. High-value Neodymium ("Nd") and
Praseodymium ("Pr") (together "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 [1] .
Metallurgical test work has confirmed that the phosphogypsum at
Phalaborwa is amenable to direct leaching with acid to extract the
contained rare earths. Utilising the technology exclusively
licenced to the Company for Southern Africa from K-Technologies
Inc. [2] Rainbow plans to deliver separated rare earth oxides at
the Phalaborwa site, allowing the full value of the contained rare
earth oxides to be realised for the benefit of shareholders.
Rainbow Rare Earths CEO, George Bennett, commented:
"This amendment serves to underscore our belief in the
significant potential of the Phalaborwa rare earths Project and
removes any uncertainty surrounding the benefit derived by Rainbow
by fixing our majority shareholding at 70%. We are therefore
delighted to have been able to cement the terms of our Joint
Venture with Bosveld and together remain enormously encouraged by
test-work carried out to date, which further underpin our
confidence in achieving positive results from the Project.
Test work has indicated that the project has the capacity to be
developed as a low capital, low operating cost asset with high
yields, reaching producing stage on an accelerated timeline. This
is due to the unique nature of the Project, with the rare earths
contained in a 'cracked' chemical form in the phosphogypsum,
requiring no significant costs associated with mining, crushing and
grinding, or chemical cracking of the underlying rare earth
minerals, which tend to form the majority of the cost base for
traditional hard rock rare earth mining projects. The amendment
reflects our confidence in the Project and is the next step in
Rainbow's overarching strategy to become a globally significant
producer of NdPr and Rare Earth Elements."
Market Abuse Regulation
This announcement contains inside information as defined in the
Market Abuse Regulation (EU) No. 596/2014, as amended, as it forms
part of UK law by virtue of the European Union (Withdrawal) Act
2018.
**ENDS**
For further information, please contact:
Rainbow Rare Earths George Bennett
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 Communications Fergus Mellon rainbowrareearths@flagstaffcomms.com
Notes to Editors:
Rainbow Rare Earth'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 accelerating the
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.
[1] Further information concerning the Inferred Mineral Resource
Estimate is contained in the Company's announcement of 17 June
2021.
[2] Further information concerning the Exclusive licence for the
SADC region granted to the Company by K-Technologies Inc. of
Florida, USA, is contained in the Company's announcement of 20
September 2021.
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END
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