Ann: Quarterly Activities Report and Appendix 5B - March 2023 Qtr, page-5

from afr

Barrenjoey, Canaccord mop up 27.5m raising for Peak Rare Earths

Tanzanian explorer Peak Rare Earths is expected to resume trading on ASX on Monday, after locking in a $27.5 million capital raising via Barrenjoey and Canaccord Genuity.

Sources said Peak Rare Earths locked in $27.5 million from local high net worth and offshore institutional investors at 50¢ a share – a 20 per cent discount to the last close – over the weekend, after launching the raising with a $25 million ask on Thursday.

The proceeds were earmarked for its Ngualla project in Tanzania, for which Peak Rare Earths finally got government mining approvals on April 17 after a five-year wait. The final investment decision is due for September 2023.

The company has a $130 million market capitalisation and is a long way from actual production, but pitches itself as one of the best undeveloped rare earths projects in the world. It has attracted a well credentialed team. It’s led by ex-Fortescue Metals executive director Russell Scrimshaw and Macquarie Capital’s former head of metals and mining for Asia, Bardin Davis. It recently lured Morgan Stanley Wealth Management’s newly retired boss Ian Chambers to its board.

With the raising and licensing done, the final investment decision expected in September, and a well-recognised team at the helm, it wouldn’t be surprising if fund managers start popping up as substantial shareholders.