Rainbow Rare Earths takes "huge de-risking step" with TechMet deal
November 08, 2023 at 09:18 am EST
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Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) CEO George Bennett speaks to Thomas Warner from Proactive after the magnet rare earth metals company announced it has granted partner TechMet an option to take a direct stake in the Phalaborwa project in South Africa.
The deal, backed by the U.S. Development Finance Corporation, involves a $50 million investment and Bennett believes it represents a vote of confidence following a rigorous due diligence process.
Bennett says that the deal represents a "huge de-risking step" for the project.
With pilot plants in South Africa and Florida focused on critical rare earth mineral separation, Rainbow's project boasts low capital intensity and a projected EBITDA margin exceeding 75%.
Bennett highlights the project's dual virtues in economics and environmental cleanup, as it repurposes gypsum waste into marketable products while eradicating environmental liabilities. This strategic move not only mitigates financing strain but also reduces shareholder dilution.
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Proactive UK Ltd
+44 20 7989 0813
uk@proactiveinvestors.com
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Rainbow Rare Earths Limited is a Guernsey-based mining company. The Company is engaged in the development of rare earth mineral projects in South Africa and Burundi. Its projects include Phalaborwa Project and Gakara Project. The Phalaborwa Project is a gypsum stack re-treatment project for the recovery of rare earths located in South Africa. The Phalaborwa Rare Earths Project has an inferred mineral resource estimate of 30.4 metric tons (Mt) at 0.44% TREO contained within phosphogypsum in two unconsolidated stacks derived from historic phosphate hard rock mining. The Gakara Rare Earth Project is located in Western Burundi, approximately 20 kilometers (km) south-southeast of Bujumbura, covering a combined area of approximately 135 square kilometers (km2). The mining permit covers an area of over 39 km2. It hosts various veins consisting of the minerals bastnaesite and/or monazite. Its subsidiaries include Rainbow Mining Burundi, Rainbow International Resources Ltd. and others.