AMN - TANZANIA: Ngualla rare earth BFS fully funded

Peak Resources has restructured funding arrangements that will fully fund completion of a Bankable Feasibility Study for the Ngualla rare earth project and also result in an increased final equity position in the project.

The new arrangements involve Peak undertaking a Placement and Rights Issue to new and existing shareholders to raise approximately $7 million. Appian, a substantial Peak shareholder and co-investor in the Ngualla project, has agreed to provide a loan of up to $6 million should there be any shortfall in the Rights Issue.

-          Restructured funding package underpins completion of the Bankable Feasibility Study for the project

-          Peak to increase ownership of Ngualla to 75% (from 62.5%)

-          Appian Natural Resources Fund remains strongly supportive and will participate in both the Placement and Rights Issue

Upon completion of the Placement and Rights issue, and following the expected receipt of the Stage 2 Appian funding of $3.1 million, Peak will have sufficient funds to fund the Bankable Feasibility Study at the Ngualla project, with completion of this study expected in early 2017.

Peak managing director Darren Townsend says: “We are pleased to welcome some new overseas institutional investors to Peak and thank our major shareholder Appian for their ongoing support of the company. Importantly, in a period of low Rare Earth pricing, this funding package sees the company fully financed through to the completion of the Bankable Feasibility Study which we believe will position Ngualla as a world class magnet metal project.”

Peak is an ASX-listed company developing the Ngualla project in Tanzania in conjunction with its partners Appian and IFC. The Ngualla deposit is a large high grade rare earth deposit, particularly rich in the high growth magnet metals neodymium and praseodymium.

Peak has started the Bankable Feasibility Study for the Ngualla project.

Appian Natural Resources Fund is a private equity fund which has been established to invest specifically in the metals and mining sector. Appian has a uniquely collaborative investment approach that seeks to partner with local owners, managers and investors.

www.peakresources.com.au; www.appiancapitaladvisory.com; www.ifc.org

News courtesy of International Mining