Peak Rare Earths Limited (ASX: PEK) has announced that it has received commitments to complete a two-tranche institutional placement for the issue of approximately 60M new fully paid ordinary shares to raise A$6M (before costs) at an offer price of A$0.10 per new share.
Tranche one of the placement is set to raise approximately A$4M and tranche two of the placement is set to raise approximately A$2M.
Commenting on the placement, executive chairman of Peak, Dr Russell Scrimshaw, said, “This capital raising will support a continuation of Peak’s strong momentum as we progress our planned investment, funding and development transaction with Shenghe and the Ngualla Project towards a final investment decision.”
Peak’s largest shareholder, Shenghe Resources, has committed to top-up its shareholding to 19.9% (currently at 19.85%) through the placement. Given Shenghe holds more than 10% of the company’s issued capital and has a nominee director on the Peak board, its participation will be in Tranche 2 and subject to receipt of shareholder approval.
In addition, some company directors, being Russell Scrimshaw, Ian Chambers, Nick Bowen, and Hannah Badenach, have also committed to participate in the placement under Tranche 2, subject to the approval of the company’s shareholders. The company’s chief executive officer, Bardin Davis, has also committed to participate in the placement under Tranche 2.
To find out more, please visit www.peakrareearths.com
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