Peak ResourcesLtd. said April 26 that it has agreed to undertake a placement andrights issue to raise approximately A$7 million to be used for the forthe Nguallarare earth project in Tanzania.
Appian, a substantial Peak shareholder and co-investor in the Nguallaproject, has also agreed to provide a loan of up to A$6 million in case of any shortfallin the rights issue.
Upon the completion of the placement and rights issue, and following theexpected receipt of the stage two Appian funding of A$3.1 million, Peak expects to complete theBFS in early 2017.
The new arrangement replaces the stage three project financing by Appianand IFC, announced in 2014. It will also increase Peak's ownership of theproject to 75% from the initial 62.5%. Appian will own 20% of Ngualla while IFCwill control 5%.