https://www.miningweekly.com

Rare earths explorer secures $12m in funding for Burundi project

8th April 2015

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Exploration and development company Rainbow Rare Earths has secured $12-million in funding from Pala Investments for the development of the high-grade Gakara rare earths project, in Burundi.
 
The first stage of funding involves a two-tranche $6-million convertible loan. The first tranche would be used for studies to detail the mining method and sequence, to investigate optimal processing methods and prepare for trial mining.

This work would be completed within six months from the closing date of the financing.

The second tranche would allow for the start of trial mining to optimise the mining method and increase efficiencies.

The deposits defined within the Gakara mining licence area, to date, all had veins outcropping at surface. This would require simple mining methods, with Rainbow expecting to use small-scale machinery and the adoption of a benching approach.

Should the trial mining prove successful, Pala would be entitled to convert the loan and invest a further $6-million in the project on an equity basis. These funds would be used to expand mine infrastructure and allow for the start of larger-scale mining, with a targeted production run rate of 5 000 t/y of greater-than-50% total rare-earth oxide concentrate.

“We are very pleased to have secured this investment from Pala, which will provide both financial and technical advice and will be a valued partner going forward. Their detailed due diligence and subsequent participation provides significant third-party endorsement of the potential and quality of our project.

“With the recent approval of the mining licence and mining convention from the Burundian government, we can now make rapid progress and I look forward to reporting on further developments in due course,” commented Rainbow MD Martin Eales.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
MBE Minerals SA (Pty) Ltd
MBE Minerals SA (Pty) Ltd

Your global lifecycle technology & service partner for materials & minerals processing equipment for coal, iron ore, copper, manganese & other...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.046 0.909s - 111pq - 2rq
Subscribe Now