Rainbow Rare Earths takes "huge de-risking step" with TechMet deal | News Direct

Rainbow Rare Earths takes "huge de-risking step" with TechMet deal

Rainbow Rare Earths Ltd
News release by Rainbow Rare Earths Ltd

facebook icon linkedin icon twitter icon pinterest icon email icon London, UK | November 08, 2023 09:16 AM Eastern Standard 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 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.


Contact Details


Proactive UK Ltd


+44 20 7989 0813



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