Peak attracts new investor for Ngualla

Peak Resources says it has received an investment proposal from International Finance Corporation, which wants to join a consortium with Appian Natural Resources Fund in its $US25 million funding deal.

The investment, 20 per cent of which would be provided by IFC, will be used by Peak to finance a bankable feasibility study at its Ngualla rare earth project in Tanzania.

IFC is a member of the World Bank Group.

The investment has been approved by IFC’s investment committee, but is subject to completion of its mandatory 30-days disclosure period and formal approval by its board.

If the deal is successful, IFC will have the right to appoint a member to Peak’s board.

So far, Appian has provided an initial $US1 million tranche out of a $US3 million bridge loan facility to Peak, which it has used to progress test work and fast track development studies.

Last week, Peak said test work at Ngualla produced a 34.4 per cent rare earth oxide mineral concentrate from a sample of the mine’s bastnasite mineralisation.

“The test work used a flotation-only process that has yet to be fully optimised, providing the potential for further improvement in concentrate grades,” the company said in a statement.

Peak said test work would continue at Independent Metallurgical Operations in Perth, and at research facilities in China.

IFC is AAA-rated by S&P and Moody’s and holds a portfolio of $US49.6 billion through equity in over 810 companies, in 118 countries.

Peak’s share price rose by 3.85 per cent to 8.1 cents per share at 9:50am.