HomeEast AfricaPeak Resources receives US$1 m for Ngualla rare earth project

Peak Resources receives US$1 m for Ngualla rare earth project

ASX-listed Peak Resources has received the first tranche of funding from Appian Natural Resources Fund to the value of US$1 million, which will allow the acceleration of project development programs.

“Preparation of the remaining documentation for the principal transaction is progressing well and remains on track for Closing by 30 November 2014. On completion, the investment is expected to fully fund Peak and the Ngualla Rare Earth Project through the Bankable Feasibility Study (BFS),” Peak Resources said in a statement.

The advance funding is provided and designed as an interim bridge loan facility to allow Peak to fast track key development programs that have the potential to further improve the Ngualla Rare Earth Projects attractive economics whilst final confirmatory due diligence and approvals are received and the preparation of the remaining documentation for the principal transaction are completed.

Peak’s Managing Director Darren Townsend said, “We are very pleased that final documentation is proceeding according to schedule. Last week Peak and Appian completed an initial joint technical workshop to map out the BFS process and work programs and we look forward to accelerating these programs.”

The receipt of the initial tranche of funding allows Peak to progress key work programs designed to evaluate the potential for further economic upside in the Ngualla Rare Earth Project. Individual programs include further beneficiation test work to build on the success of the recent beneficiation breakthrough.

The breakthrough beneficiation test work produced a 34.4% rare earth oxide mineral concentrate from a typical sample of Ngualla’s Bastnaesite Zone mineralisation. The test work used a flotation only process that has yet to be fully optimized, providing the potential for further improvement in concentrate REO grades and/or recoveries. Test work will continue at Independent Metallurgical Operations Pty Ltd in Perth and also simultaneously at research facilities in China.

The ability to produce a high grade mineral concentrate may potentially lower capital and operating costs due to smaller downstream plant components and reduced reagent use. Additionally, it may be possible to reduce operating costs even further if the subsequent recovery and separation portions of the processing plant are located close to port and power facilities in order to capture savings in reagent transport and power costs.

On site at Ngualla, dry season Environmental Baseline field surveys have been completed to provide data for the environmental and social impact assessment and Peak is pleased to report that no endangered species were identified.

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