LONDON-listed Rainbow Rare Earths has signed a joint development agreement with Bosveld Phosphates, to develop the Phalaborwa Rare Earths Project in South Africa’s Limpopo province.
The deposit, previously worked by petrochemicals company, Sasol, contains gypsum from which the rare earths neodymium and praseodymium are produced, collectively known as NdPr. The rare earths are used in the manufacture of large permanent batteries used in electric vehicles and magnets used in the construction of wind farms.
Rainbow Rare Earths will put in $750,000 in cash and shares to be paid to Bosveld Phosphates in three tranches over 12 months. At the same time, the partners will run a pre-feasibility study on the project after which Rainbow Rare Earths will own a 70% stake. There’s a mechanism to allow Rainbow’s joint venture ownership to vary between 60% and 80% depending on the outcome of the pre-feasibility study.
“This joint venture represents an important and exciting step in Rainbow’s strategy to benefit from the expected growth in global demand for rare earth metals,” said George Bennett, CEO of Rainbow Rare Earths in a statement.
Rainbow Rare Earths started trial mining of rare earths from the Gakara deposit situated on the western boundary of Burundi, in west Africa in 2017.
Rainbow Rare Earths is chaired by Adonis Pouroulis, the founder and former chairman of Petra Diamonds which grew into a four million carat diamond producer.
