Peak Rare Earths has entered into a non-binding Term Sheet with Shenghe Resources to advance the Ngualla Rare Earth Project in Tanzania. Under the terms of the agreement, Shenghe will fully fund the project by acquiring a 50% stake in Ngualla Group UK, which holds an 84% interest in the venture, for approximately $63 million.
This new arrangement builds upon an offtake agreement signed between the two companies in June 2024. The finalization of the Term Sheet is expected by September 2024, with a Final Investment Decision anticipated by December 2024. With this funding, Peak Rare Earths will not need to seek additional capital through equity, as any further project development costs will be covered through a debt facility arranged with Shenghe.
Dr. Russell Scrimshaw, Executive Chairman of Peak Rare Earths, expressed confidence in the project’s future, stating, “With the strong support of our partners, the Ngualla Project is on track to become the world’s next significant rare earth operation.”
The investment is contingent on Shenghe’s participation in an Engineering, Procurement, and Construction (EPC) tendering process for the project’s development. The agreement is also subject to final approvals from relevant regulatory authorities.
Huang Ping, Deputy Executive Chairman of Shenghe, emphasized the significance of the partnership, saying, “This Term Sheet highlights our commitment to working with Peak and Mamba Minerals to optimize and accelerate the development of the Ngualla Project.”
