Rainbow Rare Earths LTD (LON:RBW) saw its shares jump over 5% today after the firm said it is closing in on first production and sales of rare earth concentrate, as the mining and plant construction timetable at the Gakara project in Burundi remains on track.
First production and sales are expected in the fourth quarter of this year.
READ: Rainbow Rare Earths reports 'fantastic' grades at Gasagwe target in Burundi
In late afternoon trading, Rainbow Rare Earth shares were up 5.74%, or 0.62p at 11.50p.
Gakara is one of the highest grade rare earth element mining projects globally, with an estimated in situ grade of 47-67% Total Rare Earth Oxide ('TREO').
Mining of ore has already commenced at the Gasagwe site, plant construction is well underway, and civil engineering and earthworks are likely to be complete by end September.
In the background, rare earth prices continue to strengthen. Rainbow’s basket price is up by 80% in the year-to-date.
"I am pleased to report extremely positive news on all fronts, which sees the company firmly on track to deliver its first shipment of concentrate in Q4 2017,” said chief executive Martin Eales.
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“The construction of the plant at Kabezi is progressing well, despite minor logistical difficulties, and we have commenced mining ore from the Gasagwe pit. Meanwhile, the market for rare earths goes from strength to strength, and our basket price has nearly doubled since our listing on 30 January 2017."
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