By Christian Moess Laursen
Shares in Rainbow Rare Earths saw a 10% increase on Monday following the company’s announcement of a preliminary agreement with the Mosaic Co. to develop a rare earths project in Brazil.
At 1021 GMT, shares were up by 1.25 pence, totaling 14.25 pence.
Joint Development of Rare Earth Elements Extraction
As part of the agreement, Rainbow Rare Earths and Mosaic Co. will collaborate on the development of a process flowsheet and conduct a preliminary economic assessment for the extraction of rare earth elements. This will primarily focus on Mosaic’s phosphogypsum stack located in the Uberaba area of Minas Gerais, Brazil.
Parallels with Phalaborwa Project
Rainbow Rare Earths anticipates that the Uberaba stack will have a similar grade and rare earth element composition as the Phalaborwa project in South Africa. Consequently, much of the front and back-end process flowsheet used in Phalaborwa will be directly applicable to the development of Uberaba.
“The geographic diversification of our portfolio further de-risks Rainbow as one of the only rare-earth development companies with multiple near-term production opportunities and aligns with our aim 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,” stated Chief Executive George Bennett.
