Business
Placing to Raise £2.56 million
Placing to Raise £2.56 million.
About this update from Rainbow Rare Earths Ltd.
[{"type":"text","content":"\n \n \n \n RNS Number : 6941G\n Rainbow Rare Earths Limited\n 27 November 2020\n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014, AS AMENDED (MAR), 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PURPOSES ONLY AND IS NOT AN OFFER OF SECURITIES IN ANY JURISDICTION THIS ANNOUNCEMENT AND THE INFORMATION IN IT, IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, NEW ZEALAND, JAPAN, THE REPUBLIC OF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.\n \n \n \n FOR IMMEDIATE RELEASE\n \n \n 27 November 2020\n \n \n Rainbow Rare Earths Limited \n \n \n (\"Rainbow\" or the \"Company\") (LSE: RBW)\n \n \n \n \n \n Placing of new Ordinary Shares raises £2.56 million at 6p per share\n \n \n Rainbow, the high-grade rare earth producer, is pleased to announce that it has conditionally issued 42,700,000 new ordinary shares in the Company of no par value each (\"Ordinary Shares\") at a price of 6p per Ordinary Share (the \"Placing Price\"), thereby raising gross proceeds of £2.56 million (the \"Placing\"). The Placing Price represents a 5% discount to the closing share price of 6.3p per Ordinary Share on 25 November 2020 when the Placing Price was agreed.\n \n \n Reasons for the Placing\n \n \n The Placing proceeds will be used for general working capital purposes including:\n \n \n · \n The initial US$0.25 million consideration payable under the Phalaborwa Rare Earths Project earn-in agreement.\n \n \n ·\n Drilling at Phalaborwa, commencing in December 2020, to demonstrate continuity of the expected grades to inferred resource classification.\n \n \n ·\n Initial confirmatory metallurgical test-work at Phalaborwa to investigate the optimal processing options for recovery of the rare earths from the gypsum stacks.\n \n \n ·\n Capital additions to the Company's trial mining fleet and pilot processing plant at the Gakara Rare Earth Project in Burundi to support further development of the trial mining operations, better utilising the capacity of the existing pilot plant.\n \n \n George Bennett, Chief Executive Officer of Rainbow, said:\n \n \n \"We are very encouraged by the strong support we have received from bo...