Rainbow Rare Earths Anticipates Sales from Gakara Rare Earth Project in Burundi, East Africa by Year End

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 04/13/17

Rainbow Rare Earths has commenced activities at the high-grade Gakara rare earth project in Burundi following its successful IPO in January. This follows Rainbow Rare Earth US$8 million fundraising and successful IPO on the London Stock Exchange in January 2017. Gakara is one of the highest grade (47% to 67% total rare earth oxide) rare earths projects globally and is targeting first production and sales of rare earth concentrate by 2017 year end. Preparation for mining at Gakara is already underway at the company first production site, with haulage and access road construction being a primary focus as well as the establishment of the basic infrastructure for the mine site. As set out in the company IPO prospectus dated 25 January 2017, production of ROM ore will be stockpiled for approximately six months prior to commissioning of the ore processing plant. We are ready to achieve our target of first rare earth concentrate sales this year - Martin Eales said that it has been a very busy period since completion of the $8 million fund raise and IPO, and as a result Rainbow has made great progress in delivering on the strategy he presented to investors, namely bringing their Gakara project to production and sales within nine months, per Martin Eales, CEO of Rainbow Rare Earths. Work has already started on their first mining area and they will be working closely with their newly appointed plant contractors to ensure that they are ready to achieve their stated target of first rare-earth concentrate sales this year. Alongside a number of managerial roles, a local labor force has already been recruited and initial extraction of ROM ore from the high-grade veins will commence shortly, increasing in quantity once the company has taken delivery of its first fleet of mining machinery the end of April. Following the IPO, Rainbow Rare Earths elected to repay Pala Investments $1.7 million in full and final settlement of the outstanding previous debt.