StockMarketWire.com - Rainbow Rare Earths said it had sourced a $0.7m unsecured loan from major shareholder Pella Ventures to support its development and operations, while also reporting a fall in third-quarter production.

In addition, the company said it had agreed with Lind Partners to suspend any further tranches under an existing equity drawdown facility first announced on 28 January.

Output in the three months through March fell to 347 tonnes, down from 371 tonnes in the December quarter.

'Production at the company's Gakara project in Burundi in the three months to 31 March 2019 remained challenging,' Rainbow said.

'Rainfall during the period disrupted mining operations as the locally-rented haul trucks available proved incapable of performing in wet conditions which limited waste stripping and dumping.'

'The replacement of the inadequate rented machines with newer more suitable models is a critical component in Rainbow's plans to address mining performance issues.'




At 9:57am: [LON:RBW] Rainbow Rare Earths Ltd share price was 0p at 2.38p



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