b1ef888a-2af7-4ed2-b2dd-217dba031241.pdf
30 December 2015
Appian Stage 2 funding proceeds and convertible note funds received
Peak Resources Limited ("Peak" or the "Company"; ASX Code: PEK) is pleased to advise receipt of funds and notification of completion, subject to final regulatory approvals, of Stage 2 funding from Appian Natural Resources Fund ("Appian").
Highlights
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Peak has received ~A$2.1 million funding following conversion of the Convertible Note into Peak shares by Appian
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The Convertible Note was redeemed at 10.3c per Peak share, a 56% premium to the last traded share price
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Appian moves to 16.1% shareholding in Peak
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Appian Stage 2 investment of~A$3.2* million project funding to be received on receipt of regulatory approvals
Details
Peak is pleased to confirm it has received ~A$2.1 million funding from the conversion of the Convertible Note into Peak shares by Appian. The settlement of the Convertible Note and issuance of 26,696,558 additional ordinary shares in Peak increases Appian's interest in Peak to approximately 16.1%.
By mutual agreement Appian's Stage 2 investment into Peak's majority owned, associated company, Peak Africa Mineral ("PAM"), will be reduced by up to AUS ~$ 1.7 million* (subject to receipt of regulatory approvals) to reflect prevailing equity market and rare earth market conditions together with consideration of current exchange rates.
Due to favorable exchange rate movements the total committed investment made by Appian/IFC to date (inclusive of Appian's maximum reduced Stage 2 investment) is AUS
$23.0 million (Reserve Bank of Australia 22 December 2015 AUD:USD 0.722*) versus the original Term Sheet which envisaged AUS $22.0 million (Reserve Bank of Australia 27 September 2014 AUD:USD 0.876).
After completion of Stage 2 of the three stage (yet to be completed) transaction, Appian will hold a 20% interest in PAM.
Darren Townsend, Peak's Managing Director said "The receipt of these funds and agreement to enter into the Stage 2 investment phase against the backdrop of weaker commodity prices is a vote of confidence in the Ngualla Project and reinforces the commitment of our collaborative partners Appian to continue to progress the development studies. The Stage 2 funds will allow Peak to actively progress the leach recovery pilot plant work commencing the first quarter of 2016, which is an important component of the Bankable Feasibility Study."
Michael W Scherb, Appian's founder said: "Appian is pleased to continue to invest in Peak and the Ngualla Project given the positive progress of the Bankable Feasibility Study."
Peak Resources Limited Ground Floor, 5 Ord Street, West Perth, Western Australia 6005. PO Box 603, West Perth 6872. ASX: PEK ACN 112 546 700 Telephone: +61 8 9200 5360 info@peakresources.com.au www.peakresources.com.au
Non-executive Chairman: Peter Harold Managing Director: Darren Townsend Technical Director: Dave Hammond Non-Executive Directors: Jonathan Murray, Robin Mills and John Jetter Company Secretary: Graeme Scott
About Peak
Peak is an ASX-listed Company developing the Ngualla Rare Earth Project in Tanzania in conjunction with its partners Appian and IFC. Ngualla is a large high grade rare earth deposit, particularly rich in the high growth magnet metals neodymium and praseodymium. Peak has commenced the Bankable Feasibility Study for the Ngualla Project and has appointed AMEC Foster Wheeler as the lead engineer for the study.
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. For more information, visit www.appiancapitaladvisory.com
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, IFC use their capital, expertise and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, IFC provided more than US$22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org