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[Ferro-Alloys.com] Exploration and development company Rainbow Rare Earths has secured $12-million in funding from Pala Investments for the development of the high-grade Gakara rare earths project, in Burundi. The first stage of funding involves a two-tranche $6-million convertible loan. The first tranche would be used for studies to detail the mining method and sequence, to investigate optimal processing methods and prepare for trial mining. Print Send to Friend Tweet 0 0 This work would be completed within six months from the closing date of the financing. The second tranche would allow for the start of trial mining to optimise the mining method and increase efficiencies.
The deposits defined within the Gakara mining licence area, to date, all had veins outcropping at surface. This would require simple mining methods, with Rainbow expecting to use small-scale machinery and the adoption of a benching approach. Should the trial mining prove successful, Pala would be entitled to convert the loan and invest a further $6-million in the project on an equity basis. These funds would be used to expand mine infrastructure and allow for the start of larger-scale mining, with a targeted production run rate of 5 000 t/y of greater-than-50% total rare-earth oxide concentrate. “We are very pleased to have secured this investment from Pala, which will provide both financial and technical advice and will be a valued partner going forward. Their detailed due diligence and subsequent participation provides significant third-party endorsement of the potential and quality of our project. “With the recent approval of the mining licence and mining convention from the Burundian government, we can now make rapid progress and I look forward to reporting on further developments in due course,” commented Rainbow MD Martin Eales.
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- [Editor:Yueleilei]
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