Completion of Ecora Royalty Transaction
Rainbow Rare Earths completes US$8.5m royalty payment from Ecora, receiving net US$8.271m plus prior US$1.5m share subscription.
- Royalty consideration received US$8.5 million
- Transaction costs US$229k
- Net royalty funds received US$8.271 million
- Share subscription funds ca. US$1.5 million
- Total gross funding US$10 million
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Further to the announcement on 1 July 2024 that Rainbow has entered into a royalty financing and share subscription agreement with Ecora Resources PLC ("Ecora"), Rainbow is pleased to announce that all conditions precedent required for the payment of the US$8.5 million royalty consideration have been met and the funds, net of US$229k transaction costs, have been received by Rainbow.
This is in addition to the funds raised by the associated share subscription which completed in July and delivered an additional ca. US$1.5 million to Rainbow, for a total gross funding of US$10 million.
As previously announced, the funds will be used to:
- deliver the completion of the Definitive Feasibility Study on the Phalaborwa project; and
- cover all other Company financing requirements up to June 2025.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.