Tanzania – ASX-listed Peak Resources, the rare earths junior, has announced the provision of a A$5 million unsecured loan which will enable it to continue advancing development activities for its Ngualla rare earth project in Tanzania.
The loan has been provided to Peak by Jersey based Appian Natural Resource Fund – a private equity fund which has been established to invest specifically in the metals and mining sector.
With the majority of conditions precedent for the closing of the previously announced ~A$29.5 million strategic funding deal with Appian and International Finance Corporation (IFC) now complete, this funding will allow the company to continue accelerating development studies whilst it seeks one final Tanzanian regulatory approval.
The loan has a term of six months with an interest rate of 8% and Peak intends to repay the loan facility out of the initial tranches of the ~A$29.5 million strategic funding that will be received once the funding formally closes.
Additionally Peak is pleased to announce the appointment of tier one engineering firm AMEC Foster Wheeler as the lead engineer to oversee the completion of the Ngualla Definitive Feasibility Study (DFS).
AMEC Foster Wheeler is currently on site at the Ngualla project undertaking project familiarisation. It has extensive experience in the design, engineering and construction of complex beneficiation, hydrometallurgical and solvent extraction plants in Africa.
Darren Townsend, Peak’s MD says: “We are very pleased to have the on-going support of Appian as we await completion of the regulatory approval process. This funding allows us to continue to progress Ngualla’s development and we look forward to working with the AMEC Foster Wheeler team on the DFS”.
Top Project Stories in Tanzania: