Business
Royalty Agreement with Ecora & US$10m raise
Royalty Agreement with Ecora & US$10m raise.
About this update from Ecora Royalties Plc
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AS AMENDED, AS IT FORMS PART OF UK LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018 (\"MAR\"). IT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION THIS ANNOUNCEMENT AND THE INFORMATION IN IT, IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW OR REGULATION.\nNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.\nFOR IMMEDIATE RELEASE\n\n1 July 2024\nRainbow Rare Earths Limited\n(\"Rainbow\" or \"the Company\")\nLSE: RBW\n \nRoyalty Agreement and associated share placing signed with Ecora Resources PLC raising a total of US$10 million\n· Agreement endorses Phalaborwa as a stand-out rare earths opportunity, expected to be one of the highest margin rare earth projects in development globally\n· Funds raised will allow for completion of the Definitive Feasibility Study (\"DFS\") and will cover the Company's financing requirements up to June 2025\n· Funding agreement is largely non-dilutive to Rainbow shareholders compared with conventional equity funding\n· This royalty is the only revenue royalty payable for Phalaborwa due to the unique nature of the project, which does not attract royalties typically payable for hard rock mining projects\n \nNEWS RELEASE\nRainbow is pleased to announce that it has entered into a binding agreement with Ecora Resources PLC (\"Ecora\") whereby Ecora will purchase a 0.85% Gross Revenue Royalty (the \"Royalty\") on future rare earths production from the Company's flagship Phalaborwa project in South Africa, plus any other saleable products, for a cash consideration of US$8.5 million.\nRainbow has also agreed to issue 10,442,427 new ordinary shares in the Company of no par value each (\"Ordinary Shares\") at a price of 11.3652p (based on a 20 day volume weighted average price) to Ecora to raise an additional US$1.5 million via an equity subscription. \nThe Royalty financing and...