Rainbow Rare Earths CEO says $50mln investment brings US government "closer to Rainbow"
London, UK
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December 05, 2023 12:16 PM Eastern Standard Time
Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) CEO George Bennett speaks to Thomas Warner from Proactive after the magnet rare earth metals company announced partner TechMet has confirmed is to invest US$50 million into the Phalaborwa project in South Africa funded by US agency, the International Development Finance Corporation (DFC).
The investment originates directly from the US government as part of it strategic effort to establish an independent supply chain for critical minerals originating from outside of China. Bennett highlights the green aspect of the project, emphasising its role in the circular economy by reprocessing gypsum waste.
Bennett says that the $50 million investment covers over 50% of the equity financing needed for the Phalaborwa project, with the remainder expected to come from debt financing. The DFC's involvement in the equity side indicates potential support in the debt financing aspect as well, offering Rainbow a more comprehensive and attainable financial package. Despite this significant backing, Bennett clarifies that the project timeline remains unchanged, although the new funding provides greater clarity and resources to meet the established goals.
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