London Stock Exchange welcomes Rainbow Rare Earths to the Main Market
Rainbow Rare Earths (EPIC: RBW), the rare earth element (REE) development company operating in East Africa, was today welcomed to the London Stock Exchange in celebration of its entry to the Main Market.
Having successfully raised US$8 million in an oversubscribed placing, which saw a host of top London institutional investors join its share register, Rainbow is focused on bringing its Gakara Project in Burundi, one of the highest grade projects globally, to trial mining and first sales within nine months.
With REEs vital to production in key industries including the growing electric vehicle market, global demand for REEs is expected to grow. At present, China has a near-monopoly on supply and is responsible for over 90% of annual global REE sales, but the country is expected to limit output over the coming years. With one of the highest-grade rare earth projects in the world, Rainbow is capitalising on this shift in market dynamics to become an established rare earth developer in East Africa and the potential of Gakara has been recognised from majors in the industry. German multinational thyssenkrupp Raw Materials gave the Company its seal of approval earlier in 2015, having entered a ten-year offtake and distribution agreement for Gakara’s rare earth concentrate.
Rainbow is led by an expert leadership team and part of the Pella Resources Group, whose successes include Petra Diamonds and numerous other African-based natural resources companies. With a highly experienced Board and management team well-placed to provide strategic direction coupled with the support of the Burundian government and local community, Rainbow is poised to become a significant player in the non-Chinese REE market.
Rainbow Rare Earths’ CEO, Martin Eales, said:
“We are delighted to be welcomed to the London Stock Exchange, in recognition of the Company’s achievement in successfully listing on the Main Market today. This milestone marks a major step forward in the genesis of the Company and its development.
“The Gakara rare earth project is unique in terms of the quality of the grade and with the strong project economics, the support of our excellent shareholder register and a highly experienced leadership team in place, we are now focused on advancing development at Gakara to build Rainbow into a significant player in the non-Chinese REE market.”
Daniel Stewart & Company plc and Hannam & Partners (Advisory) LLP are acting as the Company’s brokers. The Company’s legal adviser is Memery Crystal LLP.