Ashurst advises Peak Resources on A30m capital raising
13 August 2021
The net proceeds of the placement will be used by Peak to progress the development of the Ngualla Project and the Teesside Refinery (including offtake and financing arrangements), expanding the company’s technical and marketing team, and the repayment of the ANRF Royalty Facility.
The placement follows the recent announcement that the Cabinet of Ministers of the Government of the United Republic of Tanzania has approved the grant of a Special Mining Licence (SML) for the Ngualla Rare Earth Project to PR NG Minerals Ltd, a 100% owned Tanzanian incorporated subsidiary of Peak.
The offer comes in the form of a two-tranche placement of approximately 277.8 million shares priced at 9¢ - an 18.2 per cent discount to the last trading price - totaling $25 million plus a 4 million share purchase plan for retail investors.
The Ashurst team was led by Corporate Transactions partner Murray Wheater, who was assisted by partner Melissa Fraser, counsel Hugh Brolsma, and lawyers Jack Jones and Andrew McClenahan.
