Peak appoints engineer for Ngualla

Peak Resources has appointed engineering firm Amec Foster Wheeler for its Ngualla rare earth project in Tanzania after locking in a $5 million interim loan.

The interim loan forms part of a $29.5 million finance facility provided by Appian Natural Resources Fund, and will allow Peak to continue developing activities at the Ngualla project.

“The loan has a term of six months with an interest rate of 8 per cent and Peak intends to repay the loan out of the initial tranches of the $29.5 million strategic funding that will be received once the funding formally closes,” Peak said in a statement.

Managing director Darren Townsend said the company was pleased to have the ongoing support of Appian as it awaits completion of the regulatory approval process.

Peak has appointed Amec Foster Wheeler as the lead engineer to oversee the completion of a definitive feasibility study at Ngualla, with the firm already on site to familiarise itself with the project.

Peak shares closed 5.1 per cent lower at 7.3 cents per share.