Members of Peak’s executive team, including the CEO Rocky Smith participated in the fund raising.
“We are extremely encouraged by the high level of interest and demand for the company’s recent fundraising activities,” he comments.
[quote]”The financial markets are beginning to realise the important part rare earths and in particular the magnet metals Neodymium/Praseodymium (NdPr) will play in the electric vehicle revolution.
“Over 95% of drive motors in electrical cars will use NdPr magnets. Soon the world will wake up to the fact that it takes an NdPr drive motor to move battery energy to the ground.”
“We see the success of the raisings as a strong validation of the quality of the Ngualla project and Peak’s strategy to ready the project for development to meet the expected upsurge in demand for NdPr,” adds Smith.
Total fund raisings and use of funds
Following the $2.8 million raised by the two tranche placement completed in September 2017 and the full $2.737 million raised under the entitlement issue Peak has completed total raisings of $5.537 million.
The funding will primarily be applied to the following:
- Progress with permitting and the mining license application for Ngualla through actively engaging with the Tanzanian government
- Study opportunities to further improve the economics of the Ngualla project
- Advance off-take discussions
- Cover general operating expenses and
- Repayment of some debt to Appian Natural Resources Fund (Appian).
About the Ngualla project
The Ngualla deposit is located in Tanzania, 147 kilometres from the city of Mbeya.
It is one of the world’s largest NdPr deposits, with total mineral resource containing 4.6 Mt of rare earth oxides (REO).
The deposit is host to a thick blanket of weathered, high-grade mineralisation from surface.
The weathered bastnaesite zone mineral resource estimate at a cut-off of 1.0% REO is 21.3 Mt grading 4.75% REO, containing 1,010,000 t REO, of which 89% is in the measured category.
Feature image credit: Peak Resources