30/09/2014 - 11:36

Peak secures $28m funding from Appian

30/09/2014 - 11:36

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Peak Resources has secured a $28.6 million funding deal with mining and metals equity investor Appian Natural Resources Fund, to assist in financing a bankable feasibility study at its Ngualla rare earth project in Tanzania.

Peak secures $28m funding from Appian
Drilling operations at Peak's Ngualla project in Tanzania.

Peak Resources has secured a $28.6 million funding deal with mining and metals equity investor Appian Natural Resources Fund, to assist in financing a bankable feasibility study at its Ngualla rare earth project in Tanzania.

Appian said it would provide an initial $3.4 million to Peak in two tranches, to progress test work and fast track development studies.

A key term of the deal will involve Appian subscribing for about 50.1 million Peak shares at 9 cents per share to raise roughly $4.5 million.

Appian will be entitled to nominate two directors to Peak’s current board.

Subject to the BFS meeting certain milestones, and after certain transactions completed, Appian will invest a further $14.1 million to gain a 37.5 per cent interest in Peak’s subsidiary, Peak African Minerals.

“We are delighted to have attracted a group of Appian’s calibre as a cornerstone investor in the company and long-term partner to help Peak’s management team develop the Nugualla rare earth project,” Peak managing director Darren Townsend said.

“Appian brings extensive operational and financial talent to supplement the Peak team and accelerate the timetable to production.”

Macquarie Capital's Perth division acted as Appian’s lead financial adviser for the transaction.

Peak’s share price rose by 6.25 per cent to 8.5 cents per share at 11:30am. 

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