Ann: Executed Offtake Agreement and Strategic MOU with Shenghe, page-132

@cwamit
The Tanzanian President strikes me as astute and wanting more value add from its minerals as a way to improve the country's lot (rather than just the purses of a few). Hence the pressure put on Peak to agree to consider this before approving the mining licence. If Peak finds reasons not to deliver downstream processing, or cannot finance it, then the Govt could well look to Shenghe to do this. China has a number of levers to pull on to maintain its stranglehold on REE and can allow a degree of downstream outside of China without losing control of the market, especially if one of its REE producers is controlling the downstream operation in Tanzania.

I think it is premature to think about a Shenghe takeover. If Peak cannot find enough finance outside of Shenghe following FID or with any further processing, then maybe. However, reading the recent MOU presentation, Shenghe pretty much controls PEK anyway (I am not meaning voting rights here).

We have no choice but to trust PEK management that this is in the best interests of shareholders.