- Shenghe Resources acquires a 19.9 per cent interest in Peak Rare Earths (PEK) from Appian Pinnacle Holdco
- The acquisition is priced at 99 cents per share, representing a 24.5 per cent premium to the last closing price of Peak shares
- Shenghe is a leading participant in the global rare earth sector and PEK view Shenghe’s investment as a strong endorsement of the company and its projects
- PEK remains committed to its integrated Ngualla-Teesside rare earth project strategy
- Shares in Peak Rare Earths are trading 8.81 per cent higher at 86.5 cents
Shenghe Resources has agreed to acquire a 19.9 per cent interest in Peak Rare Earths (PEK) from Appian Pinnacle Holdco.
The acquisition is priced at 99 cents per share, representing a 24.5 per cent premium to the last closing price of Peak shares.
Shenghe is a leading participant in the global rare earth sector with a market capitalisation of approximately US$4.9 billion (A$6.8 billion).
PEK views Shenghe’s investment as a strong endorsement of the company and its projects.
Chair of Peak Tony Pearson said the company remains committed to its integrated Ngualla-Teesside rare earth project strategy.
“We look forward to continuing our existing regulatory, technical and commercial discussions in order to progress our project to a final investment decision.”
Shenghe will not be entitled to and Appian will no longer enjoy Appian’s previous shareholder rights which included director nomination rights, capital raising notifications and information and consultation rights.
As a result, nominee Appian Director Rebecca Morgan has resigned as a non-executive director.
Tony Pearson expressed gratitude to Ms Morgan for her significant contribution to the company.
“Ms Morgan provided valuable insight across a range of areas and played a significant role in building Peak’s technical team. We wish Ms Morgan well in her future endeavours,” he said.
Shares in Peak Rare Earths were trading 8.81 per cent higher at 86.5 cents.