https://www.engineeringnews.co.za

Peak hopes for A$5.5m to advance Ngualla

19th September 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Rare earths developer Peak Resources was hoping to raise as much as A$5.5-million in a share placement and entitlement issue aimed at progressing work at its Ngualla project, in Tanzania.

The company on Tuesday announced that it will raise some A$2.8-million through a share placement to investors, priced at 4c a share.

The placement will be made in two tranches, with the first consisting of more than 30.6-million shares, and the second of 39.3-million shares. The shares will be issued under the company’s 15% placement capacity, and will not require shareholder approval.

In addition to the share placement, Peak Resources was also hoping to raise as much as A$2.7-million through a one-for-eight entitlement issue, allowing shareholders to subscribe for some 68.4-million shares at a price of 4c each.

“We are grateful for the continued support of the company’s shareholders and also delighted to welcome some new investors in the company, including ERP Strategic Minerals,” said Peak MD Darren Townsend.

Funds raised in the placement and entitlement offer will be used to progress permitting and mining license applications at Ngualla, as well as to fund study opportunities to further improve the project economics.

A recent process optimisation study increased expected production from the 28 300 t/y of mineral concentrate considered in the bankable feasibility study (BFS), to 32 700 t/y.

While the mine life at Ngualla reduced from 31 years to 26 years, operating margins have improved by 20% from $145-million a year to $174-million a year, while unit operating costs reduced by 5.7% from $34.20/kg to $32.24/kg.

The post tax and royalty net present value and internal rate of return have increased from a respective $445-million and 21%, to $579-million and 24%.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Rosond
Rosond

ROSOND provides fast, efficient, safe, and cost-effective drilling and grouting services to mining and exploration industries throughout Africa.

VISIT SHOWROOM 
AirNox Pty Ltd
AirNox Pty Ltd

AirNox (Pty) Ltd is a level 1 BBBEE manufacturer of complete AdBlue® solutions for operators of SCR diesel engines and AUS40 across South Africa...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.053 1.213s - 140pq - 2rq
Subscribe Now