Rainbow Rare Earths Share Discussion Threads

[goodgrief] 20/5/2019 15:09

Talk of China restricting exports of rare earth minerals as part trade war...

[multibagger] 07/5/2019 07:30

Another funding RNS and more disappointing news...no pot of gold at the end of this Rainbow.

Positive news rarer than the Rare Earth Minerals that they supposedly mine in diminishing quantities.

Pourolis now holding 23.5% and lending at 15%....is this going private ?

I won't be surprised at all. Caveat Emptor !

FOR IMMEDIATE RELEASE

7 May 2019

Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE: RBW)

Unsecured Loan of US$0.7 million and Operating Update

Rainbow, the rare earth element mining company, is pleased to announce a new funding agreement with its major shareholder, Pella Ventures Limited ('Pella'), comprising an unsecured loan amount of US$0.7 million to support Rainbow's development and operations.

In addition, Rainbow has agreed with The Lind Partners LLC ('Lind') to suspend any further tranches under the existing equity drawdown facility ('the Lind Facility') first announced on 28 January 2019.

Further, the Company is pleased to provide a Corporate update together with its latest quarterly production statistics for its Gakara Project in Burundi for the period January to March 2019.

Terms of the Unsecured Loan


Loan Amount: US$700,000
Loan Term: 12 months
Interest: 15%
Mandatory conversion of outstanding loan principal
Conversion to and any interest into ordinary shares of the Company
Equity: on same terms of next equity fundraising.
Purpose: To be applied towards general working capital purposes.

Martin Eales, CEO of Rainbow, said:

"The funding agreement with Pella provides working capital whilst the Company finalises its short term plans to finance the Company's planned investment for growth. Pella is the Company's founder and largest shareholder and is committed to supporting the Company to achieve its long term aims.

"Our project is exceptional and is one of the highest-grade mines of its type in the world. We have been working hard at developing a short-term strategy to: (i) maximise concentrate production from the high grade veins through the acquisition of new fit-for-purpose mining vehicles and the development of multiple mining areas; (ii) develop the upside potential of the large lower-grade Resource at Kiyenzi for future mining; and (iii) progress our investigation into the feasibility of further processing our concentrate, in order to significantly increase our economic participation in the rare earth value chain in the future."

Adonis Pouroulis, Chairman of Pella and of Rainbow said:

"Rare earths mining and processing remains one of the most significant medium-term opportunities in producing commodities for the future and in the last two years, Rainbow has proven that Gakara is a very special project which is deserving of continued support to enable it to achieve long-term sustainable positive cashflow at even the currently low basket price."

Adonis Pouroulis has a beneficial interest in Pella and therefore a beneficial interest in 23.5% of the Company's issued share capital. Rainbow shares are listed on the Standard segment of the Main Market of the London Stock Exchange and as such, Chapter 11 of The Listing Rules concerning Related Party Transactions does not apply to the Company. Notwithstanding this, Rainbow's Board, excluding Adonis Pouroulis and Robert Sinclair (as directors of Pella), has concluded that the terms of the loan are fair and reasonable.

Lind Facility

Rainbow announced an equity drawdown facility with Lind on 28 January 2019. Rainbow has now agreed with Lind to suspend further tranches under the Lind Facility. The amount drawn down under the Lind Facility in three tranches so far has been a total of US$0.3 million.

[napoleon 14th] 04/5/2019 17:14

THIS OUTFIT IS QUITE CLEARLY A SHAM!

You;d have thought that with this as a backdrop they could do 100 times better.

Get yer finger out, Pouroulis, & make it happen,
The shares are too cheap to sell.......

[napoleon 14th] 19/3/2019 07:42

I've written these off.

[sleveen] 18/3/2019 17:15

Will RBW need to use this funding source soon?

Rainbow, the rare earth element mining company, is pleased to announce a new funding agreement, comprising an unsecured convertible security amount of US$750,000 and a 24 month equity facility of up to US$7.0 million with an entity managed by The Lind Partners LLC ("Lind").

[napoleon 14th] 01/3/2019 10:34

RBW a typical mine at the mo.: "a hole in the ground with a liar sitting on it" (Mark Twain).
However, the site is technically superb - huge %ages of Rare Earth minerals, open cast mine & Pouroulis + Thysenkrup involved can't be bad.
I'm watching, sitting on 80% loss on 2.5% of PF invested. Couldn't sink much further! This one could suddenly turn for the better & share price recover fast.
Timing is everything.....

Just my 2p/share's worth...

[book5] 27/2/2019 21:34

Feature in the Evening Standard

[babbler] 07/2/2019 12:08

possibly last of the sells late reported.

[fillipe] 07/2/2019 11:59

Movement today - + almost 20%.

f

[novicetrade68] 31/1/2019 11:49

Net receipt less than $1800/tonne but costs over $3000. What else can they say apart from that they are learning more by the day.

[novicetrade68] 28/1/2019 10:32

I agree it's a shame RBW seemingly has no other option than to sign up to a death spiral trap. LIND also provides loan shark funding to EDL and look at the chart of that company, more importantly the pitiful volumes.

I guess RBW will be an AVOID for the foreseeable future. Again a real pity given the potential.

Every good news is going to be sold into, it's absolutely no point buying these shares.

[pugugly] 28/1/2019 08:02

ayeshaad4- Absolutely correct - Potentailly toxic as hell and wildly dilutive -

[ayesha4] 28/1/2019 07:56

Death spiral funding. Theyve tried to dress it up but death spiral funding

[mp79] 28/1/2019 07:54

Can somebody shed some lights? It sounds a complex deal in today's RNS...

[avsome1968] 21/12/2018 09:31

whats going on with this company been monitoring for a while 12 p placement price still dropping is there still a seller

[napoleon 14th] 17/12/2018 19:01

Better than nowt! We're still alive & developing the resource.
With this type of share you just hang on in bad times...

[bookwormrobert] 17/12/2018 13:55

JORC just released.
Very detailed. Good news, I think.

[fillipe] 20/11/2018 14:39

Hi All.

Interest in RBW appears to have much departed, since their end-Oct RNS.

It's cheapened a lot since then, buy maybe not quite enough?

Has anyone any gossip on RBW, pls?

f

[loganair] 08/11/2018 20:19

No, just the down turn in the share price was over done.

[magicmayhem] 08/11/2018 14:23

Up 1p, something going on?

[napoleon 14th] 05/11/2018 03:18

Pouroulis not sufficiently involved?
Where are you, golden boy? Where's your famous golden touch?

Miton might be short of money 'cos I reckon they're taking at least a 50% loss, perhaps £250K.
So they'd have to 'fess up to another £400K loss to sell the rump?
Unless they're mega fed up!

How many took up the new shares at 12p a few weks ago? They can't be happy either.
Only one thing would save RBW quick time - a ban on exports of rare earth metals by China.
Then we might possibly get the US$10K/ton basket price mentioned in the header.

Otherwise this is dead money for quite a while......

[vatnabrekk] 01/11/2018 21:24

So they still have over 8 million shares. If they intend to sell out completely, it might take some time.

[podgyted] 01/11/2018 20:41

Miton - RNS tonight

[vatnabrekk] 01/11/2018 15:46

Huge sells today. Over 5M shares sold today already, looks like someone is selling out. we should know in a few days.