- Peak Rare Earths (PEK) taps investors for $27.5 million to develop its Ngualla rare earth project in Tanzania
- The company received commitments to complete a two-tranche institutional placement for 55 million new fully paid ordinary shares at 50 cents apiece
- The placement marks another step in the development of Peak’s Ngualla project and follows the signing of a binding framework agreement with the Government of Tanzania
- PEK says the placement strengthens its balance sheet and ensures it’s well-capitalised to commence early works, front-end engineering and finalise binding offtake arrangements
- Peak Rare Earths closed 13.6 per cent lower at 54 cents on Monday afternoon
Peak Rare Earths (PEK) has tapped investors for $27.5 million to develop its Ngualla rare earth project in Tanzania.
The company received commitments to complete a two-tranche institutional placement for 55 million new fully paid ordinary shares at 50 cents apiece.
The first tranche of the placement will raise $14.3 million, with shares to be allotted on Friday, May 5.
Meanwhile, Peak’s largest shareholder, Shenghe Resources, has committed to top-up its shareholding from 19.8 per cent to 19.9 per cent via the placement.
Given Shenghe currently holds more than 10 per cent of the company’s issued share capital and has a nominee director on the Peak board, its participation will be in tranche two and subject to shareholder approval.
The placement marks another step in the development of Peak’s Ngualla project and follows the signing of a binding framework agreement with the Government of Tanzania.
“Following the recent execution of a framework agreement and grant of a special mining license for the Ngualla project, Peak can now shift its focus towards making a final investment decision by the end of September 2023,” PEK Executive Chairman Russell Scrimshaw said.
“The placement strengthens Peak’s balance sheet and ensures that it is well-capitalised to commence early works, front-end engineering and design and finalise binding offtake arrangements and project financing discussions, which are progressing well.”
Peak Rare Earths closed 13.6 per cent lower at 54 cents on Monday afternoon.