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- Peak Rare Earths (PEK) signs a memorandum of understanding (MoU) with Shenghe Resources to support the development of the Ngualla rare earth project in Tanzania
- The non-binding MoU follows the company’s decision to initially develop the project on a standalone basis and produce a high-grade bastnaesite rare earth concentrate
- The agreement paves the way for technical cooperation of the project and for an opportunity for Shenghe to acquire a direct interest in Ngualla
- The offtake aspect of the MoU stipulates Shenghe will purchase at least 75 per cent of the production from the project for a seven-year period
- Shares in Peak are trading steady at 52 cents as of 12:58 pm AEDT
Peak Rare Earths (PEK) has signed a memorandum of understanding (MoU) with Shenghe Resources to support the development of the Ngualla rare earth project in Tanzania.
This follows the company’s decision to initially develop Ngualla on a standalone basis and produce a high-grade bastnaesite rare earth concentrate.
The MoU will last for 12 months and paves the way for technical cooperation of the project and gives Shenghe the opportunity to acquire a direct interest in the Ngualla project.
Under the offtake terms of the MoU, Shenghe will purchase at least 75 per cent of the production from Ngualla which may include a high-grade mineral concentrate or a mixed-rare earth carbonate (MREC).
The offtake agreement is for an initial seven years but may be extended if both parties agree.
Commenting on the MoU, Peak Executive Chair Russell Scrimshaw said Shenghe is uniquely positioned to assist Peak in the development of Ngualla.
“We believe that Shenghe’s successful cooperation with MP Materials, provides an excellent roadmap for our offtake, technical and strategic relationship moving forward.”
Shenghe CEO Wang Xiaohui said the signing marked an important step in Shenghe’s strategic relationship with the company.
“Shenghe regards the Ngualla rare earth project as the premier undeveloped rare earth project in the world.
“We are keen to work closely with Peak in developing the project through a combination of offtake, technical and financial support.”
The partnership confirmed it will also assess the potential to explore other areas of strategic cooperation outside of the project.
Shares in Peak were trading steady at 52 cents as of 12:58 pm AEDT.
