Non-Renounceable Entitlement Issue
Perth, Dec 5, 2013 AEST (ABN Newswire) - Peak Resources Limited (ACN 112 546 700) (
ASX:PEK) (PKRLY:OTCMKTS) (Company) advises that it intends to undertake a one (1) for five (5) pro rata non-renounceable entitlement issue (Entitlement Issue or Offer) of approximately 55,111,377 fully paid ordinary shares (New Shares) at an issue price of $0.06 per New Share to raise up to approximately $3,306,683.
The Offer will include one (1) free attaching option to acquire a Share (New Option) for every one (1) New Share subscribed for and issued. The New Options will be exercisable at $0.10 each on or before 30 June 2015.
Eligible shareholders will comprise those shareholders with a registered address in Australia or New Zealand or any other shareholders in other jurisdictions to whom the Company decides to make offers.
The Company proposes to use the proceeds of the Offer as follows:
(a) fund the completion of the Preliminary Feasibility Study and Reserve estimate on the Ngualla Rare Earth Project in Tanzania (Project);
(b) continue discussions with a number of potential cornerstone investors and off take customers;
(c) fund the commencement of a Definitive Feasibility Study (including metallurgical optimisation and environmental permitting) on the Project; and
(d) fund the costs of the Offer and provide additional working capital.
Following completion of the Offer, the Company will have issued approximately 55,111,377 New Shares and 55,111,377 New Options resulting in total Shares on issue of approximately 330,668,263 and total options on issue of approximately 114,712,295.
About Peak Resources Limited
Peak Resources Limited (ASX:PEK) is focused on delivering our high-grade Ngualla rare earth project via a sequenced development approach to enable low carbon technologies to power the green transformation.
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