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- Peak Resources (PEK) shares enjoyed a 37 per cent rise after being granted a special mining licence for the Ngualla Rare Earth Project in Tanzania
- Peak now has exclusive rights to conduct mining operations at the project, which it says is one of the highest grade rare earth deposits in the world
- The company is laying plans for offtake and financing arrangements for the mine, with construction completion tabled for 2022
- Construction of the project is expected to cost approximately US$200 million (A$271.6 million)
- Peak Resources shares are up 37.4 per cent and trading at 12.5 cents at 3:15 pm AEST
Peak Resources (PEK) shares enjoyed a 37 per cent rise after being granted a special mining licence for the Ngualla Rare Earth Project in Tanzania.
It ticks off the final major regulatory approval required for Peak Resources to push forward with the project, which the company describes as one of the highest grade neodymium and praseodymium rare earth deposits in the world.
The licence grants Peak exclusive rights to conduct mining operations at Ngualla, which spans approximately 18.1 square kilometres in Southern Tanzania.
Peak said it could now pursue financing, offtake and development arrangements ahead of a targeted construction date for the end of September 2022.
Peak Managing Director Bardin Davis said the approval marked a landmark moment for the ASX-lister.
“This is a very exciting time for Peak as we progress Ngualla towards development and construction,” he said.
“This will position Ngualla among the most advanced rare earth development projects that is fully permitted, has a JORC Compliant Ore Reserve, licence to mine, completed Bankable Feasibility Study and a fully piloted process from ore to separated oxides.”
Construction of the project is expected to cost approximately US$200 million (A$271.6 million).
Peak Resources shares were up 37.4 per cent and trading at 12.5 cents at 3:15 pm AEST.
