Australian firm Peak Resources has unveiled plans to secure new funds to support the development of the Ngualla Rare Earth Project in Tanzania.

The company has received commitments to raise $22.05m (A$30m) through a two-tranche structure to institutional, sophisticated and professional investors.

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The move comes after the Government of Tanzania’s union cabinet granted a special mining licence for the Ngualla project to Peak’s local subsidiary PR NG Minerals.

The company will use the funding to advance with the development of the Ngualla Project and the Teesside Refinery including offtake and financing arrangements.

Peak also plans to use a portion of the proceeds to expand technical and marketing teams among other purposes.

Peak Resources managing director Bardin Davis said: “We are delighted to be welcoming new Australian and international institutional investors onto our register. The placement will support Peak as it progresses offtake, funding and development milestones for the Ngualla Project and the Teesside Refinery.

“The repayment of the ANRF Royalty Facility will clear the way for Peak to meet its commitment to transfer the Special Mining Licence into a newly registered company that will be jointly owned by Peak (84%) and the Tanzanian Government (16%).”

Under the first tranche, the company will issue 226.8 million new fully paid ordinary shares at the price of A$0.09 per share to institutional, sophisticated and professional investors.

In the second tranche, an additional 106.4 new fully paid ordinary shares at the same price will be issued.

The Ngualla Project is centred on the Ngualla Carbonatite in southern Tanzania around 147km from the city of Mbeya.

According to the Peak Resources website, the project is one of the world’s largest and highest grade undeveloped neodymium (Nd) and praseodymium (Pr) rare earth projects.