Africa-focused Rainbow Rare Earths (LSE: RBW) has signed an agreement with Bosveld Phosphates to co-develop the Phalaborwa rare earths project in South Africa.
The asset contains about 35 million tonnes of gypsum resulting from historic phosphate hard rock mining, containing rare earth elements (REEs) with an estimated average in-situ grade of 0.6% total rare earth oxides (TREOs), the companies said.
As part of the agreement, Rainbow will pay Bosveld US$750,000 in cash and share in three equal tranches over 12 months.
Once a prefeasibility study is complete, Rainbow will hold 70% of the project and Bosveld the remaining 30%.
The partners will develop and process rare earth elements from the gypsum contained in two stacks at the project site, they said.
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