Rare earths explorer secures $12m in funding for Burundi project
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.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Announcements
What's On
Subscribe to improve your user experience...
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?
Receive 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)
➕
Recieve 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
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation















