LONDON – Bracewell (UK) LLP represented Ecora Resources PLC in relation to the acquisition of 0.85 percent gross revenue royalty over the Phalaborwa Rare Earths Project in South Africa. Ecora Resources will also acquire shares in Rainbow Rare Earths Ltd, the majority owner of the Phalaborwa Rare Earths Project, which is listed on the London Stock Exchange.
Rare earth elements occur naturally, but rarely in concentrated forms that are commercial to extract. They are essential in the production of permanent magnets, which are key components in renewable wind power turbines and electric vehicle motors. Consequently, rare earth elements are critical to the energy transition.
Completion is targeted to occur during the third quarter of 2024 and is conditional upon exchange control authorisation from the South African Reserve Bank Financial Surveillance Department and the execution of certain security documents.
Darren Spalding, who led the Bracewell team, commented: “We are delighted to have supported Ecora Resources on this transaction, as our mining practice goes from strength to strength. The progress of projects of this nature are essential to diversify the production of rare earths outside China. It is important for the energy transition and underlines the increasing interdependence between the mining and energy sectors.”
Bracewell lawyers involved include:
Partners: Darren Spalding and Oliver Irwin
Senior Associate: Kirsty Delaney
