Peak Resources (ASX: PEK) has extended to 20 January 2014 its one for five non-renounceable entitlement issue that seeks to raise up to $3.3 million.
The company is offering about 55,111,377 shares priced at $0.06 each. Proceeds will fund completion of the Preliminary Feasibility Study and Reserve estimate on the Ngualla Rare Earth Project in Tanzania.
It will also be used to continue discussions with a number of potential cornerstone investors and off take customers; fund commencement of a Definitive Feasibility Study; and and provide additional working capital.
The offer is not underwritten.
*
Preliminary Feasibility Study*
The company remains on track to complete the Preliminary Feasibility Study in the first quarter of 2014.
Notably, this will include a revised economic assessment that is likely to reflect the benefit that rising prices for the key high value rare earths will have on projected annual revenue.
The PFS will be followed by a maiden Reserve estimate in the same quarter.
Peak noted that Ngualla is now significantly de-risked with a proven, low cost metallurgical process demonstrated ‘end-to end’ from mineralisation to high purity separated rare earth oxide products.
Ngualla has estimated NPV of US$1.768 billion and IRR of 60%, on the December 2012 10,000 tonne per annum base case scenario, capital costs of US$373 million and operating costs of US$10.18 per kilogram of rare earth oxides.
The project remains on track to achieve rare earth production in 2016.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 5 hours ago.
The company is offering about 55,111,377 shares priced at $0.06 each. Proceeds will fund completion of the Preliminary Feasibility Study and Reserve estimate on the Ngualla Rare Earth Project in Tanzania.
It will also be used to continue discussions with a number of potential cornerstone investors and off take customers; fund commencement of a Definitive Feasibility Study; and and provide additional working capital.
The offer is not underwritten.
*
Preliminary Feasibility Study*
The company remains on track to complete the Preliminary Feasibility Study in the first quarter of 2014.
Notably, this will include a revised economic assessment that is likely to reflect the benefit that rising prices for the key high value rare earths will have on projected annual revenue.
The PFS will be followed by a maiden Reserve estimate in the same quarter.
Peak noted that Ngualla is now significantly de-risked with a proven, low cost metallurgical process demonstrated ‘end-to end’ from mineralisation to high purity separated rare earth oxide products.
Ngualla has estimated NPV of US$1.768 billion and IRR of 60%, on the December 2012 10,000 tonne per annum base case scenario, capital costs of US$373 million and operating costs of US$10.18 per kilogram of rare earth oxides.
The project remains on track to achieve rare earth production in 2016.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 5 hours ago.