ASX-listed Peak Resources has entered a conditional agreement to move to 100% ownership of the Ngualla Rare Earth Project.
Peak Resources has reached a Binding Heads of Agreement (Appian BHoA) with Appian Pinnacle HoldCo (Appian) to roll up its ownership interest in Mauritian registered company, Peak African Minerals (PAM) into Peak on the terms set out below (Appian Roll-up). PAM is the parent company of Tanzanian registered PR NG Minerals which is the holder of the Project’s Exploration Licences and Special Mining Licence application.
Completion of the Appian Roll-up is conditional on the other shareholder in PAM, International Finance Corporation (IFC), entering into its own Binding Heads of Agreement (IFC BHoA) within 30 days of the date of the Appian BHoA, being 28 August 2019, under which it agrees to roll up its ownership interest in PAM into Peak (IFC Roll-up).
Peak Resources believes the proposed simplification of the PAM ownership structure and streamlining of the governance procedures will ensure that the interests of all shareholders will be aligned towards the development of the Project.
The proposed simplified structure is intended to facilitate the introduction of additional institutional investors in Peak Resources and development partners to the Project.
Peak Resources' Chairman, Peter Meurer comments, “I am extremely pleased that we have been able to reach this agreement with Appian.
"We expect to be able to finalise an agreement with IFC soon, which will enable us to present a clear path to development for development partners and institutional investors.”
“Appian and IFC demonstrated great foresight investing into the Project at a time when the commodity markets were largely unaware of the burgeoning importance of Rare Earths.
"The importance of Rare Earths has recently been brought sharply into focus by the ongoing trade dispute between the USA and China, and the underlying demand fundamentals supported by the e-Revolution assure of great opportunities for Peak Resources and the Project.“
“It was Appian and IFC’s initial investment that has assisted Peak to become the most advanced and leading Rare Earth project development company. We look forward to both Appian and IFC’s continued support as we push towards implementation of the Project.”