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Rainbow Rare Earths Ltd - South Africa and east Africa-focused producer of rare earth oxides - Signs a deal with Bosveld Phosphates Ltd, permitting 100% ownership of the Phalaborwa Project in South Africa. Rainbow says it will get an immediate 85% interest in the unincorporated joint venture that holds the rights to Phalaborwa, with Bosveld holding the remaining 15%. Says it will pay Bosveld $5.0 million in cash in July under the terms of the deal. Additionally, Rainbow says under the deal, it is being granted a call option to buy the remaining 15% of the JV owned by Bosveld, in return for $7.0 million of equity in Rainbow. This could happen at any time from October 31 to December 31, 2025. Says shares issued according to the call option will be subject to a 24-month lock-up. Chief Executive Officer George Bennett says: ‘This is an exciting time for Rainbow and Phalaborwa, with the front end of the pilot plant operational in South Africa and the back end being constructed in US. I look forward to announcing the results from the front end pilot testing, confirming we are able to extract the rare earths and produce a saleable mixed rare earth sulphate.’ Current stock price: 8.60 pence each, up 1.2% on Wednesday morning in London 12-month change: down 33% Copyright 2023 Alliance News Ltd. All Rights Reserved.
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