RARE EARTH EXTRACTION CO. LIMITED
(Registration number 1989/003212/06)
JSE code : RCO - ISIN code : ZAE000005807
("Rareco" or the "company")
Further to the cautionary announcement published on 12 October 2001, the
directors of Rareco wish to inform shareholders that the Industrial
Development Corporation of South Africa Limited ("IDC") has agreed to make
available a financing facility of R16 million to Rareco for the development
of its rare earth project in the Western Cape. This facility has been
granted subject to several conditions that Rareco expects to fulfil over the
next few months. This IDC approval means that Rareco has now raised a
significant portion of the total finance that is needed to commence the
project. Rareco is awaiting responses in respect of applications to other
financial institutions and companies for the balance of the finance that is
required. Rareco also plans to raise capital by way of a rights offer to be
held in due course.
Shareholders were previously reminded that a minority shareholder's appeal
on very restricted grounds against the dismissal of the shareholder's
application for the winding-up of Rareco would be held soon; it is now
expected to be held in March 2002.
Shareholders are accordingly requested to continue to exercise caution when
dealing in their shares on the JSE Securities Exchange South Africa.
Somerset West
27 November 2001
Corporate Advisor and Sponsor
The Janus Corporation (Pty) Ltd
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