(Ecofin Agency) - Peak Resources, active on Ngualla rare earth project in Tanzania, announced yesterday April 23 a fundraising worth AUD6.3 million through a two-tranche share placement. The company will issue a total of 157.5 million of share worth 4 cents each.

The fund will be directed to finance the company’s contribution to Ngualla project and Teesside refinery and advance the permitting process. It will also be used to cover the costs associated with marketing and negotiation of the project’s offtake and financing agreements, and to pay back some debt, while also covering other operating expenses.

Results from the optimized bankable feasibility study showed that Ngualla is expected to produce 32,700 tons of rare earth concentrate annually over a 26-year lifespan.

Louis-Nino Kansoun