Peak Resources land $5M funding deal and appoints lead project Engineer

THE BOURSE WHISPERER: Peak Resources (ASX: PEK) has landed a $5 million unsecured loan to allow it to continue to advance development activities for the company’s Ngualla rare earth project in Tanzania.

The loan has been provided to Peak by Jersey-based Appian Natural Resource Fund.

In February this year, Peak announced a strategic funding deal with Appian and International Finance Corporation worth around $29.5 million.

The majority of conditions for the closing of this deal have now been completed.

Peak said this latest funding would allow the company to continue to accelerate development studies at Ngualla whilst it seeks one final Tanzanian regulatory approval.

The loan has a term of six months with an interest rate of eight per cent, which Peak indicated it intends to repay out of the initial tranches of the $29.5 million strategic funding.

Peak also announced it has appointed tier one engineering firm AMEC Foster Wheeler as the lead engineer to oversee the completion of the Ngualla Definitive Feasibility Study (DFS).

AMEC Foster Wheeler has experience in the design, engineering and construction of complex beneficiation, hydrometallurgical and solvent extraction plants in Africa.

Peak indicated AMEC Foster Wheeler is currently on site at the Ngualla project getting to know the project better.

“We are very pleased to have the ongoing support of Appian as we await completion of the regulatory approval process,” Peak Resources managing director Darren Townsend said in the company’s announcement to the Australian Securities Exchange.

“This funding allows us to continue to progress Ngualla’s development and we look forward to working with the AMEC Foster Wheeler team on the DFS.”