Mining company Peak Rare Earths has signed a non-binding Term Sheet with rare earth importer Shenghe Resources to advance the Ngualla Rare Earth Project in Tanzania. Shenghe will fully fund the Ngualla project by acquiring a 50% stake in Ngualla Group UK – which holds an 84% interest in the project – for approximately $63 million.
Building on an offtake agreement signed in June 2024 between the two companies, the new agreement is set to finalize by September 2024, with a Final Investment Decision expected by December 2024. With the funding, Peak Rare Earths will not be required to raise additional capital through equity funding, with any additional project development costs set to be raised through a debt facility arranged with Shenghe.
Dr. Russell Scrimshaw, Executive Chairman of Peak Rare Earths, stated that, “With the benefit of strong support from our partners, the Ngualla Project is well-positioned to become the world’s next rare earth operation.”
The investment is based on the condition that Shenghe will participate in an Engineering, Procurement and Construction tendering process for the development of the project. The agreement also awaits final approvals from the requisite regulatory authorities.
Huang Ping, Deputy Executive Chairman of Shenghe, added, “This Term Sheet underscores our commitment to collaborate with Peak and Mamba Minerals to optimize and accelerate the development of the Ngualla Project.”
