Rainbow Rare Earths raises funds and signs LOI for potential new revenue stream
London, UK
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October 05, 2023 03:00 AM Eastern Daylight Time
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 a placing and the signing of a letter of intent with NEXUS Intertrade that will see the Rainbow Rare Earths clean up gypsum stockpiles for sale by NEXUS.
Bennett says that the £4.5mln placing was executed at a negligible discount to the market price and replenishes the funds used to secure 100% of the Phalaborwa project. The funds will also support the completion of their pilot plant and their DFS study, currently slated for Q2 2024. Bennett also highlights the letter of intent with NEXUS Intertrade, emphasising Rainbow's commitment to making Phalaborwa an environmentally-friendly project.
They are addressing environmental concerns by neutralising the acid water in the waste gypsum. Moreover, with gypsum deposits in South Africa expected to deplete by 2026-2027, Rainbow is poised to fill the gap, potentially selling between 40,000 to 100,000 tonnes annually, adding a significant new revenue stream to the company.
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