Peak Rare Earths - General Discussion

[John]

Here is an article that REEx just released on Peak Rare Earths

https://rareearthexchanges.com/news...640552648&mc_cid=9778a871e6&mc_eid=3d177c6a68

So I have seen Peak Rare Earths aroudn for a while. It looks like they have been making steady progress. I just had a "peak" at some of their recent developments:

• The Tanzanian government has granted the Special Mining Licence for the Ngualla project — a key milestone after years of negotiation.
• The deposit is a high-grade undeveloped NdPr resource (i feel they all say that).
• Peak has signed non-binding MoUs covering approximately 75% of its forecast NdPr production. (again...this happens all the time with these junior miners)
• Their development strategy currently focuses on producing concentrate for export, but could that change under Tanzania’s local beneficiation goals or due to global ex-China supply chain strategies?

Something that stood out for me was the Tanzanian government’s 16% free-carried interest in the project. I'm not close enough to this type of deal structure to know if that is a good deal or not? Any one here with that type of experience provide me some insights?

For me it is too early to invest in this company. I would want to see the following:
- Those MoUs start to turn into Binding.
- They are producing a carbonate...and with the local govt there wanting to value add and build industry...why don't they go to full oxide production?
- They have done a FEED, but i assume that just went to the concentrate level of processing.

What do others think of their strategy, minerology and execution so far?

 

[Nomad]

Looks like China may be providing the IP on this one!

Peak to be acquired by Shenghe following Entitlement Offer (144 Pages)

 

[John]

Thanks @Nomad

This still has to go to a vote...and a quick look at the register shows that there is a large retail holding. So lots of different people the board have to get to agree.

I don't think this is a done deal.

But they can always come back and offer more.

I think alot of people would have invested at 50 to 70 cents.....so the new offer should be in there somewhere (assuming this offer at 35 cents...if they want to get enough votes.

Interesting they are doing a cap raise to get them through......to implement the scheme of arrangement....




This all has alot of hairs on it....tread with caution!!!

 

[Fundamental]

It is a done deal, no matter how Retail votes, the deposit has now been sterilised from Western participation by Shenghe. The Tanzanian Govt will pull the SML unless work starts soon and PEK don't have the $ to go it alone. At least the Shareholders get some money back, unlike poor old GGG holders.