Rare earth mining company Rainbow Rare Earths has entered into a funding agreement with one of its largest shareholders Pipestone Capital, for an unsecured $1-million loan to support the company's development and operations.
The funding is intended to finance ongoing exploration, operations, working capital and other general requirements.
Pipestone is an affiliate of Rainbow CEO George Bennett.
Rainbow on Tuesday said the facility underlined the confidence placed in the Gakara project by Bennett, who already holds an interest of 8.6% of Rainbow's issued share capital.
"Since his appointment in August 2019, George has set out a revised strategy for the company based around turning Gakara into a major strategic source of rare earths, with the aim of producing at least 20 000 t/y of concentrate," it added.