• Rainbow Rare Earths to raise $14.6 million via share placement

• Funds to advance South Africa Phalaborwa project, Brazil Uberaba project

• Capital supports studies, aiming for production and future financing

British mining company Rainbow Rare Earths said Tuesday it plans to raise about $14.6 million from investors.

The funds will partly finance development of its Phalaborwa rare earths project in South Africa.

The company said the capital raise will be carried out through a share placement involving several partners, including commodities trader Traxys Group. The transaction is expected to close around April 9 and should cover funding needs beyond mid-2027.

Part of the proceeds will also go to its Uberaba project in Brazil, although Phalaborwa remains the priority. As the company’s main asset, the South African project will use the funds to complete its definitive feasibility study (DFS) this year, aimed at refining its economic parameters.

Development costs are estimated at $326 million, with projected annual output of 1,900 tonnes of rare earth oxides over 16 years.

“All investors see the value of investing in Rainbow and support the Company's vision to become one of the highest margin and lowest cost producers of rare earths,” Chief Executive George Bennett said. “The funds raised will allow Rainbow to complete both the Phalaborwa DFS by the end of 2026 and the Uberaba PFS with our partner, Mosaic,” he added.

With rare earth supply now a strategic priority globally, the results of this work will be key to the project’s future. Completion of the DFS is expected to support the next phase, including securing construction financing. In addition to market investors, Phalaborwa has also received U.S. backing since 2023 through investment firm TechMet.

Aurel Sèdjro Houenou