Proactive Investors - Run By Investors For Investors

Rainbow Rare Earths signs cooperation agreement to fund downstream definitive feasibility study

The miner said it would form a joint venture with TechMet to undertake the DFS, which would be fully funded by TechMet on a reimbursable-carry basis of up to US$3mln
Handshake
TechMet also agreed to subscribe for US$500,000 in new ordinary shares

Rainbow Rare Earths Ltd (LON:RBW) has signed a cooperation agreement with TechMet Limited to fund a Definitive Feasibility Study (DFS) for downstream rare earth separation.

The rare earth metals miner said it would form a joint venture with TechMet to undertake the DFS, which would be fully funded by TechMe, following an initial scoping exercise on a reimbursable carry basis of up to US$3mln.

WATCH: Rainbow Rare Earths looks to open second mining area in fourth quarter

TechMet has also agreed to subscribe for US$500,000 in new ordinary shares, which would be subject to a 12-month lock-in.

In addition to the TechMet subscription, the firm also said it intended to raise further proceeds of around US$1.5mln through a placing of new shares at a price of 12p per share, a 3% discount to the company’s last closing price of 12.3p.

Rainbow said the proceeds of the combined capital raising would be used to develop its Murambi mining area, which is due to commence production in the fourth quarter of 2018, in addition to the exploration and development of Gomvyi, its third mining area.

-- Adds details of share placing --

View full RBW profile View Profile

Rainbow Rare Earths Limited Timeline

Related Articles

gold mining site
February 06 2019
The company is testing nine separate high-grade targets, including the Machiche target, which has never been tested before
copper
December 18 2018
Tshukudu is a joint venture is set up on a 70/30 MOD/Metal Tiger basis to continue exploration in Botswana
1539587791_Kavango.jpg
October 15 2018
KSZ holds potential for world class base and precious metals deposits

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use