Peak Resources raises funding for Ngualla Rare Earth Project
Published by Will Owen,
Global Mining Review,
Peak Resources Ltd has announced that it has received commitments to raise approximately AUS$30 million through a two-tranche structure to institutional, sophisticated, and professional investors.
The placement follows the recent announcement that the Cabinet of Ministers of the Government of the United Republic of Tanzania has approved the grant of a Special Mining Licence (SML) for the Ngualla Rare Earth Project to PR NG Minerals Ltd, a 100% owned Tanzanian incorporated subsidiary of Peak.
The net proceeds of the placement will be used by Peak to progress the development of the Ngualla Project and the Teesside Refinery (including offtake and financing arrangements), expanding the company’s technical and marketing team, and the repayment of the ANRF Royalty Facility.
Commenting on the placement and the repayment of the ANRF Royalty Facility, the Managing Director of Peak, Bardin Davis, said:
“We are delighted to be welcoming new Australian and international institutional investors on to our register. The placement will support Peak as it progresses offtake, funding, and development milestones for the Ngualla Project and the Teesside Refinery.
“The repayment of the ANRF Royalty Facility will clear the way for Peak to meet its commitment to transfer the SML into a newly registered company that will be jointly owned by Peak (84%) and the Tanzanian Government (16%).
“The termination of the life-of-mine royalty further de-risks the financing of the Ngualla Project and provides shareholders with increased exposure to earnings from the project and the potential upside in rare earth prices. A combination of lower project outflows and the removal of security arrangements will also better position the project to secure attractive long-term project and export financing support.
“Importantly the cost of repaying the financing facility is materially below the anticipated value of the royalty stream over the life of the Ngualla Project and reflects the significant enhancement in the value of the project since July 2015.”
Read the article online at: https://www.globalminingreview.com/mining/10082021/peak-resources-raises-funding-for-ngualla-rare-earth-project/
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