Business
Q3 Ops Update & Pella Loan
Q3 Ops Update & Pella Loan.
About this update from Rainbow Rare Earths Ltd.
[{"type":"text","content":"\n \nRNS Number : 1128Y Rainbow Rare Earths Limited 07 May 2019 \n\nFOR IMMEDIATE RELEASE\n7 May 2019\n \nRainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE: RBW)\nUnsecured Loan of US$0.7 million and Operating Update\n \nRainbow, the rare earth element mining company, is pleased to announce a new funding agreement with its major shareholder, Pella Ventures Limited ('Pella'), comprising an unsecured loan amount of US$0.7 million to support Rainbow's development and operations. \n \nIn addition, Rainbow has agreed with The Lind Partners LLC ('Lind') to suspend any further tranches under the existing equity drawdown facility ('the Lind Facility') first announced on 28 January 2019.\n \nFurther, the Company is pleased to provide a Corporate update together with its latest quarterly production statistics for its Gakara Project in Burundi for the period January to March 2019.\n \n \nTerms of the Unsecured Loan \n\n\n\nLoan Amount:\n\n\nUS$700,000\n\n\n\n\nLoan Term:\n\n\n12 months\n\n\n\n\nInterest:\n\n\n15% \n\n\n\n\nConversion to Equity:\n\n\nMandatory conversion of outstanding loan principal and any interest into ordinary shares of the Company on same terms of next equity fundraising.\n\n\n\n\nPurpose:\n\n\nTo be applied towards general working capital purposes.\n\n\n\n \nMartin Eales, CEO of Rainbow, said: \n\"The funding agreement with Pella provides working capital whilst the Company finalises its short term plans to finance the Company's planned investment for growth. Pella is the Company's founder and largest shareholder and is committed to supporting the Company to achieve its long term aims. \n \n\"Our project is exceptional and is one of the highest-grade mines of its type in the world. We have been working hard at developing a short-term strategy to: (i) maximise concentrate production from the high grade veins through the acquisition of new fit-for-purpose mining vehicles and the development of multiple mining areas; (ii) develop the upside potential of the large lower-grade Resource at Kiyenzi for future mining; and (iii) progress our investigation into the feasibility of further processing our concentrate, in order to significantly increase our economic participation in the rare earth value chain in the future.\"\n \nAdonis Pouroulis, Chairman o...