Exercise of Share Options

RNS Number : 7843J

Rainbow Rare Earths Limited

29 April 2022

 

29 April 2022

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

Exercise of Share Options

Rainbow Rare Earths announces that the Company has allotted a total of 1,718,987 new ordinary shares of no par value ('Ordinary Shares') at a price of 5.28p per share to the Australian Special Opportunity Fund, LP on receipt by the Company of a valid notification to exercise share options.  Following this exercise, the Australian Special Opportunity Fund, LP holds a further 2,000,000 share options with an exercise price of 5.28p per share, which can be exercised until 24 January 2023.

The new Ordinary Shares rank pari passu with the Company's existing issued Ordinary Shares and application has been made for the Ordinary Shares to be admitted to the Main Market of the London Stock Exchange.  Dealings are expected to commence on 5 May 2022.

The Company's enlarged issued share capital will be 524,405,810 Ordinary Shares. The Company has no treasury shares. This figure of 524,405,810 Ordinary Shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.

**ENDS**

For further information, please contact:

Rainbow Rare Earths Ltd	Company	George Bennett Pete Gardner	[phone]
SP Angel Corporate Finance LLP	Broker	Ewan Leggat Charlie Bouverat	[phone]
Tavistock Communications	PR/IR	Charles Vivian Tara Vivian-Neal	[phone] [e-mail]

Notes to Editors:

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

 

END

 

 

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