Ann: Issue of Shares - Major shareholder increases its holding, page-7

You ask for thoughts on Shenge's additional share acquisition - well, these are mine, and they aren't particularly cheerful either. There are references to Peak Rare Earths (PEK) in later comments, and that is where we should be looking for some enlightenment, as it is a useful lesson as to where we might wind up with ETM. Peak hold a resource at Ngualla in Tanzania. On 15th June 2021, I bought 5,000 Peak (using the post 10:1 consolidation figure) and on 23rd July another 5,000. Average price was $1.32 per share (post consolidation). On 14th February, the shares were trading at $0.76. Then, to everyone's surprise, Appian - a UK based finance house, announced that the 19.9% of the company which Appian held, had been sold to Shenge at $0.99 per share.
At that time, Peak were negotiating with the Government of Tanzania for the granting of a special mining licence (SML). Particularly surpised were the board of Peak, who it seemed, had no foreknowledge of this, and on 28th February, the Peak board issued a press release headed "Peak remains committed to being a non-Chinese aligned source of independent rare earth production"
Shareholders were all waiting on the SML, and it was understood, that the hold up in granting the SML was in part, due to Government of Tanzania negotiating to have a large part of the processing of the ore from Ngualla to be carried out in Tanzania. It was not until April 2023, that the SML was granted. It was then announced by Peak's board on 9th August, that a bindinng offtake agreement had been signed with Peak, and a non-binding Memorandum of Understanding for co-operation on funding. Currently Peak SP is hovering around $0.32, so not the best investment I have ever made!
Prior to Shenge's involvement, Peak were intending to sign a lease at Wilton Park on Teeside, for processing the Ngualla ore, which it now appears will be sent to China for processing. It is worth being reminded that China processes some 90% of rare earths world wide. So, what does this mean for ETM, who are engaged in an arbitration case with the Government of Greenland, regarding their proposed rare earth mine at Kvanefjeld? Does this mean that Shenge will up their shareholding to just under 20% in ETM, to stay within ASX rules, or could there be a possible takeover, with Shenge then negotiating direct with the GoG. There is an interesting article in The Diplomat, on the subject of China and the debt trap, which can be found here:

https://thediplomat.com/2022/01/is-chinas-debt-trap-diplomacy-in-greenland-simply-on-ice/

My view of all this, is that ETM should be very wary of engaging with Shenge, I don't think we SH's will benefit, and that we should see matters out with the arbitration, and depending on the outcome of that, decide what to do.