Rainbow Rare Earths CEO George Bennett tells Proactive's Stephen Gunnion that a £7.52mln private placement at a signifiant premium to Friday's closing price should be seen as a vote of confidence in the company and its rare earths project in Phalaborwa, South Africa.
Shareholders showed strong support, with cornerstone investor TechMet contributing £5.54mln to the placement following a rigorous independent technical and ESG due diligence process. The funds will be used to complete and operate the pilot plant, where a unique process utilizing tried and tested equipment will extract rare earths.
The cash injection will also support the completion of the definitive feasibility study, targeting Q1 2024. The funding extends Rainbow's runway into Q2 2024.
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