Business
DFC to fund proposed $50M TechMet investment
DFC to fund proposed $50M TechMet investment.
About this update from Rainbow Rare Earths Ltd.
[{"type":"text","content":"\n \n \n\n5 December 2023\nRainbow Rare Earths Limited\n(\"Rainbow\" or \"the Company\")\nLSE: RBW\n \nProposed US$50 million TechMet investment in Phalaborwa to be funded by\nthe U.S. International Development Finance Corporation\n \n· The TechMet Limited (\"TechMet\") option to invest US$50 million directly in the Phalaborwa project in South Africa will be funded by the U.S. International Development Finance Corporation (\"DFC\")\n· DFC US$50 million funding commitment announced at COP28, the United Nation's Climate Change Conference, demonstrating the global effort to responsibly scale production of the metals essential for clean energy technologies\n· Phalaborwa recognised as having the potential to play a significant role in the establishment of a more diversified Western supply chain of the critical rare earths vital for electric vehicles and wind turbines, as well as many other advanced technologies\n· Rainbow's innovative processing flowsheet will deliver separated rare earth oxides, highlighting its unique position within the pipeline\nNEWS RELEASE\nRainbow Rare Earths is pleased to announce that it has received confirmation that the DFC will be the sole source of funding for the proposed US$50 million investment by TechMet to acquire a direct equity stake in the Phalaborwa project (the \"TechMet Option\", as announced on 8 November 2023).\nA focus for the DFC is critical minerals, defined as those minerals that are essential to the economic or national security of the U.S. and which have a supply chain vulnerable to disruption. The DFC addresses critical mineral investment for the U.S. via its strategic stake in TechMet, which aims to assist in the development of world-class projects across the critical minerals supply chain. The projects identified by TechMet must be operated according to high standards of environmental, social and governance criteria, as well as showing the potential for excellent economic returns.\nThe four rare earths that will be produced at Phalaborwa - neodymium, praseodymium, dysprosium and terbium - are all designated as critical minerals further to their important role in the transition to the green economy. As vital components of permanent magnets, these rare earth elements are used within electric ve...