Peak Rare Earths has completed its share purchase plan (SPP), which garnered strong support surpassing its A$2m ($1.24m) target with a total of A$2.77m in applications.

Closed on 24 December 2024, the SPP aimed at raising A$2m. It provided an opportunity for eligible shareholders to purchase up to A$30,000 worth of fully paid ordinary shares in the company.

This offering allowed shareholders to buy shares at A$0.10 each, consistent with the pricing of the company's earlier two-tranche placement.

In November 2024, the company secured commitments for a two-tranche institutional placement, issuing approximately 60 million new shares at A$0.10 each, raising A$6m.

Eligible shareholders who applied for shares worth A$1,000 will receive their full requested allocation, equating to 10,000 shares.

Those seeking more than A$1,000 worth of shares faced a scale-back based on their shareholding as of the record date, with a guaranteed minimum allocation of 10,000 shares.

Peak executive chair Russell Scrimshaw said: “On behalf of the board and management, we thank shareholders for their ongoing support for Peak and the Ngualla Rare Earth Project.”

In July 2024, Peak Rare Earths signed a nonbinding term sheet with China-based mining company Shenghe Resources.

This agreement will see Shenghe, which already owns a 19.9% stake in Peak through its subsidiary Shenghe Resources (Singapore), acquire a 50% interest in Ngualla Group UK.

Ngualla Group UK is the majority owner of the Ngualla Rare Earth Project in Tanzania, a high-grade, low-cost Neodymium Praseodymium deposit.

The Ngualla project includes developing a mine, mill, concentrator, community initiatives, and related infrastructure.

The construction is projected to cost around $320m and is expected to generate approximately 600 direct and 3,000 indirect jobs during the construction phase.

Once operational, the project is anticipated to create roughly 220 direct and 1,000 indirect jobs.