Peak Resources advances Ngualla funding plan

Peak Resources has signed a non-binding finance agreement that should see it fully-funded to production at its Ngualla rare earths mine in Tanzania.

The Perth-based junior said it had signed a memorandum of understanding  with an unnamed investor which will see funding released in three stages.

The first stage will be released after a pre-feasibility study for the project is completed, the second stage following a definitive feasibility report, and the final stage will coincide with construction commencing at the project.

A formal agreement is expected to be complete by the end of May, chairman Alastair Hunter said.

“This MOU is the result of several months of discussions and negotiations,” Mr Hunter said in a statement.

At 12:20PM, WST, Peak shares were steady at 13 cents.