Invests 1.5 mln usd in Rainbow Rare Earths (Il Sole 24 Ore Radiocor) - London, 01 Jul - The UK mining royalty group Ecora Resources said that it has entered into an agreement to acquire a 0.85% gross revenue royalty over the Phalaborwa Rare Earths Project located in South Africa for a total cash consideration of 8.5 million dollars.

In connection with the royalty acquisition and in addition to the cash consideration, Ecora has subscribed for 10,442,427 new ordinary shares in Rainbow Rare Earths, the majority owner of the Phalaborwa project, for 1.5 million dollars.

Rainbow is listed on the London Stock Exchange.

"The investment represents Ecora's first rare earth exposure, and is in-line with the group's stated strategy of further diversifying and growing its portfolio of future facing commodity royalties over high quality operations and projects," it added.

Marc Bishop Lafleche, the CEO of Ecora, commented:"The transaction provides Rainbow with a non-dilutive means of securing the funding to move the project forward towards the completion of a DFS and subsequently a final investment decision. It also provides Ecora with a counter-cyclical entry point to further diversify our commodity exposure to include rare earth elements whose end markets are forecast to see sustained demand growth over the coming decades.".

AAA-Web

(RADIOCOR) 01-07-24 12:43:25 (0304) 5 NNNN