JOHANNESBURG (miningweekly.com) – ASX-listed Peak Resources has secured funding to advance its Ngualla rare earth project, in Tanzania, through the bankable feasibility study stage to a development decision.
Peak reported on Monday that Jersey-based private equity investor Appian Natural Resources Fund had agreed to a total investment of $25-million, which included a $3-million binding bridge loan facility.
Appian and Peak entered into an exclusive nonbinding term sheet for the balance of the funding, which hinged on conditions such as the execution of final documentation, the completion of due diligence, regulatory approvals and Appian board approval.
“We are delighted to have attracted a group of Appian’s caliber as a cornerstone investor in the company and long-term partner to help Peak’s management team develop the Ngualla rare earth project. Appian brings extensive operational and financial talent to supplement the Peak team and accelerate the timetable to production,” commented Peak MD Darren Townsend.
Appian has made the bridge loan available to Peak’s indirectly owned Tanzanian subsidiary PR NG Minerals – the 100% owner of the project – to allow Peak to rapidly progress further beneficiation testwork.
Last month, Peak announced the successful production of a mineral concentrate grading 34.4% rare-earth oxide using a beneficiation process developed specifically for Ngualla’s mineralogy. This represented a 6.9 times upgrade on the feed grade and had been achieved with a flotation only process.
At the time, Townsend said that the high-grade concentrate would reduce the operating and capital costs of the project.
The preliminary feasibility study estimated a capital cost of $282-million for the project, which would operate for 58 years, delivering 10 000 t/y of rare earths with room for expansion.