Ecora Royalties (TSX:ECOR) has updated the Phalaborwa Rare Earths Project Definitive Feasibility Study (DFS) being conducted by Rainbow Rare Earths (LSE:RBW).
The company holds a 0.85% gross revenue royalty on the Phalaborwa project, which increases to 1.10% if commercial production does not occur before 1 July 2028.
Rainbow’s pilot plant has operated successfully in H1 2026, with data recovered feeding into the process design for the DFS. Test work and pilot plant operations have optimised and simplified the flow sheet at Phalaborwa.
Major process decisions and optimisations have been delivered and implemented by Rainbow’s in-house laboratory.
The company reports that 75% of the flowsheet is now in the engineering phase of the DFS, with final optimisation of the solvent extraction circuit underway.
Ecora Royalties focuses on critical minerals royalties and streaming, with copper at the core of its portfolio alongside other commodities linked to electrification and energy transition.
The company’s cash generative portfolio includes producing royalties and streams with a strong organic growth profile expected to generate substantial additional cash flow in the medium term.
The Phalaborwa project represents part of Ecora’s strategy of investing in high-quality opportunities in established mining jurisdictions with experienced management teams.
Rainbow continues to advance the project towards the completion of its DFS as it works toward the July 2028 commercial production timeline that would trigger the higher royalty rate for Ecora.
Write to JC Villarba at Mining.com.au
Images: Unsplash
