Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) CEO George Bennett joined Proactive's Stephen Gunnion with details of a $10 million royalty agreement and equity investment by Ecora Resources.
Bennett elaborated that $8.5 million is raised at a 0.85% royalty stream from Phalaborwa and $1.5 million through equity based on a 20-day view. "We think this is a positive endorsement of the project and the fact that Ecora are taking equity," Bennett said, highlighting the transaction's non-dilutive nature to shareholders.
Bennett also emphasised Ecora’s extensive due diligence, which confirmed the project's viability and technology. This marks the third independent validation of Rainbow Rare Earths' technology, following previous validations from the DFC.
The funds will help complete the DFS (definitive feasibility study) workstreams, scheduled for the first half of next year, ensuring the project progresses smoothly without affecting the share price.
Bennett also provided an update on the optimisation results from the frontend pilot work at Phalaborwa and the positive results from the pilot plant in Florida, achieving up to 97% purity in separated red oxides with a target of 99.5%.
