PERTH (miningweekly.com) – ASX-listed Peak Resources will raise A$6.3-million through a share placement to fund its Ngualla project costs, in Tanzania.
The company will issue 86-million shares in the first tranche of its share placement, priced at 4c a share, to raise an initial A$3.44-million. The first tranche placement will be made under Peak’s existing capacity.
The second tranche of 71.5-million shares, which will raise an additional A$2.86-million, will be subject to shareholder approval.
“We experienced very strong interest from investors for this capital raising. The announcement last week from the Tanzanian government of the appointment of Tanzania’s new Mining Commission, including the commission’s chairperson and other appointees, is very timely, this means Tanzania is able to now process Peak’s special mining licence application, and is a key development which we have been awaiting,” said Peak CEO Rocky Smith.
Funds from the placement will be used for Peak’s share of the Ngualla project costs, and the Teesside refinery, including permitting and licence applications, as well as the costs associated with marketing and negotiating offtake and project financing, and to retire some debt, while also covering general operating expenses.
Ngualla is expected to deliver 32 700 t/y of mineral concentrate over its 26-year mine life.