RNS Number : 2326A
Rainbow Rare Earths Limited
22 May 2023
 

22 May 2023

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

Grant of Share Options

Rainbow Rare Earths announces that pursuant to its Long Term Incentive Plan ("LTIP") approved in January 2021 its Board of Directors, on the recommendation of the Remuneration Committee, has approved the grant of 3.15 million nil priced share options to Directors and Persons Discharging Managerial Responsibility of the Company as follows:

Director

Number of share options

George Bennett

900,000

Pete Gardner

500,000

Adonis Pouroulis

500,000

Alex Lowrie

250,000

Atul Bali

250,000

Peter Pham

250,000

Shawn McCormick

500,000

 

The options will vest in equal tranches over three years: one third after 12 months, one third after 24 months and one third after 36 months; there are no other vesting conditions.

In aggregate the share options granted above represent 0.53% of the existing issued share capital of the Company.  Following this award the Company has 18,399,400 share options in issue under the existing share option schemes, representing 3.1% of the existing issued share capital of the Company, including 6,858,000 nil priced options issued under the LTIP and 11,541,400 options with a weighted average exercise price of 13.33 pence per share under the unapproved share option plan.

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

George Bennett

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Bennett holds 3,958,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

900,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

900,000

 

Nil

e)

Date of the transaction

 

19 May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Pete Gardner

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Gardner holds 2,400,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

500,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

500,000

 

Nil

e)

Date of the transaction

 

[22] May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Adonis Pouroulis

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Pouroulis holds 1,902,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

500,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

500,000

 

Nil

e)

Date of the transaction

 

19 May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Alex Lowrie

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Lowrie holds 1,250,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

250,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

250,000

 

Nil

e)

Date of the transaction

 

19 May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Atul Bali

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Bali holds 1,250,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

250,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

250,000

 

Nil

e)

Date of the transaction

 

19 May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Peter Pham

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. Pham holds 750,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

250,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

250,000

 

Nil

e)

Date of the transaction

 

19 May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

1

Details of the person discharging managerial responsibilities/person closely associated

a)

Name

Shawn McCormick

2

Reason for the notification

a)

Position/status

PDMR

b)

Initial notification/ Amendment

Initial Notification

3

Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor 

a)

Name

Rainbow Rare Earths Limited

b)

LEI

213800HONYSAXTG6KS11

4

Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted

 

a)

Description of the financial instrument, type of instrument

 

Identification code

Ordinary shares of no par value

 

 

GG00BD59ZW98

b)

Nature of the transaction

 

Award of option to purchase ordinary shares of the Company. Following the transaction, Mr. McCormick holds 1,850,000 options to purchase ordinary shares.

c)

Price(s) and volume(s)

 

Price(s)

Volume(s)

Nil

500,000

d)

Aggregated information

 

Aggregated volume

 

-      Price

 

 

 

500,000

 

Nil

e)

Date of the transaction

 

19 May 2023

Note: the Company is not considered in a close period at the time of this transaction.

 

f)

Place of the transaction 

Outside a trading venue

 

 

For further information, please contact:

 

Rainbow Rare Earths Ltd

Company

George Bennett

+27 82 652 8526

 

 

Pete Gardner

 

 

 

Cathy Malins (IR)

+44 7876 796 629

 

 


cathym@rainbowrareearths.com

 

 



Berenberg

Broker

Matthew Armitt

+44 20 3207 7800

 


Jennifer Lee

 

 



 

Tavistock Communications

PR/IR

Charles Vivian

+44 (0) 20 7920 3150

 


Tara Vivian-Neal

rainbowrareearths@tavistock.co.uk

 

Notes to Editors:

Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the magnet rare earth elements neodymium and praseodymium ("NdPr"), dysprosium and terbium.

The Phalaborwa Rare Earths Project, located in South Africa, comprises a total Mineral Resource Estimate of 30.4 Mt at 0.44% TREO contained within unconsolidated gypsum stacks derived from historic phosphate hard rock mining. High value NdPr oxide represents 29.0% of the total contained rare earth oxides, with economic Dysprosium and Terbium oxide credits enhancing the overall value of the rare earth basket in the stacks. Rainbow will use a proprietary separation technique developed by its partner K-Technologies, Inc. for the plant at Phalaborwa, which simplifies the process of producing separated rare earth oxides (versus traditional solvent extraction), leading to cost benefits, as well as being more environmentally friendly.

The Phalaborwa Preliminary Economic Assessment has confirmed strong base line economics for the project, which has a base case NPV10 of US$627 million[1], an average EBITDA operating margin of 75% and a payback period of < two years. Pilot plant operations will commence in 2023, with the project expected to reach commercial production in 2026, just five years after work began on the project by Rainbow.



[1] Net present value using a 10% forward discount rate

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