Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) has signed off a royalty financing and share subscription agreement with Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) for the Phalaborwa project in South Africa.
All conditions precedent required for the payment of the US$8.5 million royalty consideration have been met, Rainbow added, and the funds, net of US$229,000 transaction costs, have been received.
That is on top of a US$1.5 million share issue in July, which together have generated gross funding of US$10 million to continue the Phalaborwa development work.
Rainbow added the money would be used for a Definitive Feasibility Study of the project and to cover all other company financing requirements up to June 2025.
Total measured, indicated and inferred resources at Phalaborwa, which will extract the metals from gypsum stacks, now stand at 35 million tonnes at 0.44% TREO [rare earths].