Mr. Huang Ping, Vice Chairman of Shenghe Resources Holding Co, Ltd said "We continue to believe that the Ngualla Project is the premier undeveloped rare earth project in the world. This Term Sheet demonstrates our commitment to work with Peak and Mamba Minerals to further optimise the Ngualla Project and to expedite its development and funding"
Shenghe partnership … key elements
Offtake Binding offtake agreement in place
Funding Full project funding solution via Shenghe’s A$96m investment into NGUK as well as project-level debt facility
Project construction and development Shenghe to participate in tender for project EPCM, EPC or EPS execution package
Technical collaboration Ongoing optimisation of current flow sheet as well as collaboration around in-country downstream development
Peak and Shenghe … a transformational partnership Binding offtake in combination with a non-binding investment, development and funding Term Sheet with Shenghe underpins an integrated development solution
Shenghe to invest A$96m to subscribe for a 50% stake in Ngualla Group UK Ltd Implied valuation of A$0.36/share on a post-transaction basis
Full project funding solution No requirement for Peak to contribute any additional development equity funding Satisfaction of conditions precedent and financial close of Shenghe transaction Q1, 2025 Final Investment Decision Q1, 2025
In summary; - Final investment decision before the end of March - Free carried from here. No requirement for any additional development funding from Peak - The premier undeveloped rare earth project in the world - Shenghe is unwavering with serious intent!
and as Ed Dowd would say, "you can take that to the bank!"
PEK Price at posting:
16.5¢ Sentiment: None Disclosure: Not Held
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