PERTH, Australia, October 27, 2014 /PRNewswire/ --
Peak Resources Limited ("Peak" or the
"Company"; ASX Code: PEK) is pleased to
announce that International Finance Corporation ("IFC"), a
member of the World Bank Group, is proposing an investment in Peak
and the Ngualla Rare Earth Project in Tanzania, by joining a consortium with Appian
Natural Resources Fund ("Appian") in the previously
announced ~US $25million
financing arrangement (see ASX Announcement on 29 September 2014 titled 'Peak secures BFS
funding for Ngualla Rare Earth Project').
HIGHLIGHTS
- IFC, a member of the World Bank Group, is proposing to join
Appian in the ~US $25million total
investment in Peak and the Ngualla Project on a 20:80 pro rata
split (IFC contributing 20% of the total investment)
- The potential investment would represent IFC's first within
the rare earth space and is a strong endorsement of the technical
advantages along with the socioeconomic benefits of the Ngualla
Project
The investment has been approved by IFC's investment committee
but is subject to the successful completion of IFC's mandatory 30
day disclosure period and formal approval by IFC's Board.
Peak's Managing Director Darren
Townsend said, "Following the introduction by Appian of IFC,
we are very pleased to have attracted an organization of the
standing and reputation of IFC as part of the consortium with
Appian in the US $25million funding
package. The favorable technical aspects of the Ngualla
Project together with the expertise and abilities these strategic
partners bring put Peak in a solid position to become one of the
next new rare earth producers."
Summary Agreement Details
Appian Agreement
On 29 September 2014 (see ASX
Announcement 'Peak secures BFS funding for Ngualla Rare Earth
Project') Peak announced details of a ~US $25 million total funding agreement with Jersey -
based Appian Natural Resources Fund ('Appian').
The agreement with Appian is subject to final documentation and
receipt of regulatory approvals and contemplates a staged
investment anticipated to fully fund the Company through the
Bankable Feasibility Study for the Ngualla Rare Earth Project. The
transaction remains on track for closing by 30 November 2014.
The first US $1million - the
initial tranche of a US $3million
Bridge Loan Facility - has been received from Appian and allows
Peak to fast track key development studies, which are now in
progress (see ASX Announcement 'First tranche of funding for
Ngualla Rare Earth Project received' of 13 October 2014).
Potential IFC Investment
Following the introduction by Appian, IFC have completed a
thorough due diligence on Peak and the Ngualla Project. IFC are,
subject to the successful completion of IFC's mandatory 30 day
disclosure period and approval by IFC's Board, proposing to
participate as a consortium partner with Appian in the ~US
$25million total investment described
above, on a 20:80% pro rata basis (IFC 20% ; Appian 80%). IFC will
have the right to appoint one member on a seven member board of
Peak Resources Limited.
During the 30 day disclosure period, the Summary of Investment
Information (SII) and Environmental and Social Action Plan (ESAP)
are made available to interested parties through their lodgment on
the IFC's website*. The 30 day disclosure period extends to
23 November 2014.
Figure 1 below illustrates the investment structure on
completion of all stages of the ~US $25
million investment by Appian and IFC.
* Source: IFC website http://www.ifc.org
(Photo:
http://photos.prnewswire.com/prnh/20141027/713123 )
On successful completion of both the Appian and IFC
transactions, Peak and the Ngualla Project will be fully funded
through the BFS and have two well respected strategic partners to
assist in driving the Project further forward towards
production.
About IFC
Part of the World Bank Group, IFC is the largest source of loan
and equity financing for the emerging markets private sector. It is
AAA-rated by S&P and Moody's and currently holds a portfolio of
US $49.6 billion through equity in
over 810 companies worldwide in 118 countries.
IFC is well respected as a promoter of environmental, social and
corporate governance standards. It is recognised as having the
resources and know-how of a global development bank with the
flexibility of a merchant bank.
IFC acts as a long-term strategic partner and cornerstone
investor with deep financial resources for future support together
with an ability to possibly catalyze further financial support from
other investors.
About Appian
Appian Natural Resources Fund is a private equity fund which has
been established to invest specifically in the metals and mining
sector. Appian has a uniquely collaborative investment approach
that seeks to partner with local owners, managers and investors to
leverage its world-class operational and corporate finance
expertise.
With this value-add approach and long-term investment horizon,
it aims to generate significant value for the investors and other
stakeholders of both the Company and Appian.
Further announcements will be made following the completion of
IFC's disclosure period and Board process.
Contact: Telephone: +61-8-9200-5360,
info@peakresources.com.au, http://www.peakresources.com.au