Rainbow Rare Earths announced that criticalmetals champion TechMet Ltd has been granted the option to invest US$50 million in a direct stake in the Phalaborwa Project in South Africa.
TechMet has completed extensive due diligence, materially de-risking the project, and confirming Phalaborwa’s potential to be one of the lowest cost producers of separated rare earth oxides currently in development.
George Bennett, CEO of Rainbow, commented: “We are delighted with the confidence shown by our long-term strategic investor, TechMet, following their due diligence on Phalaborwa. We believe that the TechMet Option is a significant de-risking for the financing requirements. This validates the Company’s focus on the development of rare earths from secondary sources, as well as supporting the Company’s belief that Phalaborwa is a strong and unique project. We expect Phalaborwa to continue to attract funding, especially from US-sources of capital, due to the focus on the critical role of these rare earth metals in the technology-driven industrial and clean energy age.”
Brian Menell, Chairman and CEO of TechMet, said: “Phalaborwa has the potential to become one of the most environmentally friendly and lowest-cost rare earth projects anywhere in the world. Thanks to Rainbow’s proprietary separation technology, Phalaborwa provides a significant opportunity to fast-track production of the four most economically important rare earth elements which are essential for future supply chains for electric vehicles, wind turbines and other products vital to the energy transition and the global economy. TechMet, is excited to be able to continue to support this outstanding project, which will produce rare earths in the most responsible manner possible.”
