Business
US$1.0 million Unsecured Loan from CEO
US$1.0 million Unsecured Loan from CEO.
About this update from Rainbow Rare Earths Ltd.
[{"type":"text","content":"\n \n \n RNS Number : 9739D\n Rainbow Rare Earths Limited\n 25 February 2020\n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n 25 February 2020\n \n \n \n \n \n Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE: RBW)\n \n \n Unsecured Loan of US$1.0 million from an affiliate of the CEO George Bennett\n \n \n \n \n \n Rainbow, the rare earth mining company, is pleased to announce a new funding agreement with one of its largest shareholders, Pipestone Capital Inc (\"Pipestone\"), of which George Bennett (Rainbow's CEO) is the ultimate beneficiary.\n \n \n \n \n \n The funding comprises an unsecured loan of US$1.0 million to support Rainbow's development and operations. The funding is intended to finance ongoing exploration, operations, working capital and other general requirements.\n \n \n \n \n \n The facility underlines the confidence placed in the Gakara project by the CEO, George Bennett, who already holds an interest in 8.6% of the Company's issued share capital. Since his appointment in August 2019, George has set out a revised strategy for the Company based around turning Gakara into a major strategic source of rare earths, with the aim of producing at least 20,000 tonnes per annum of concentrate. The latest corporate presentation can be found at \n \n \n www.rainbowrareearths.com\n \n \n \n \n \n \n \n \n The loan carries no interest, however includes warrants over 2,000,000 new Ordinary Shares of no par value (\"Ordinary Share\"), at a strike price of 4.55 pence per Ordinary Share, and a life to expiry of 4 years. The strike price represents a premium of 30% to the 20-day volume weighted average price of the shares prior to the date of the agreement. \n \n \n \n \n \n It is intended that the loan be repaid out of the proceeds of any future fundraise; however Pipestone may elect to convert a portion of the loan into equity on the same terms as those offered to investors at that time.\n \n \n \n \n \n \n \n \n Loan Amount:\n \n \n \n \n US$1,000,000\n \n \n \n \n \n \n Loan Term:\n \n \n \n \n 12 months\n \n \n \n \n \n \n Interest:\n \n \n \n \n Nil\n \n \n \n \n \n \n Warrants:\n \n \n \n \n Over 2 million shares at 4.55 pence, valid for a period of 48 months\n \n \n \n \n \n \n \n \n \n Repayment:\n \n \n \n \n In full out of the proceeds of any subsequent fu...