PERTH (miningweekly.com) – Chinese rare earths group Shenghe Resources Holding Co has acquired a 19.9% stake in ASX-listed Peak Resources from shareholder Appian Pinnacle.
Peak on Monday told shareholders that the acquisition was priced at 99c a share, representing a 24.5% premium to the company’s last closing price.
“Shenghe is a leading participant in the global rare earth sector and we view its investment as a strong endorsement of the world-class nature of Peak’s integrated Ngualla-Teesside rare earth project,” said Peak chairperson Tony Pearson.
“Peak remains committed to its integrated Ngualla-Teesside strategy and we look forward to continuing our existing regulatory, technical and commercial discussions in order to progress our project to a final investment decision (FID).”
Peak last year announced that it would undertake an update on its bankable feasibility study (BFS) for the Ngualla-Teesside project to further optimise the integrated Ngualla-Teesside project by expanding production.
The updated study will reflect a nameplate yearly mill throughput of 800 000 t/y, which would deliver a 28% increase in the production anticipated in an optimised BFS to 624 000 t/y, and an increase in yearly neodymium praseodymium (NdPr) production to between 3 000 t and 3 500 t, from the 2 810 t/y NdPr considered in the optimised BFS.
Under the revised timeline an FID is targeted before the end of December 2022.
Peak said on Monday that Shenghe’s interest in the company is not expected to have an impact on its day-to-day strategy or operations.