Peak Rare Earths (ASX:PEK) signs MoU with Shenghe Resources for Ngualla, Tanzania – The Market Herald

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  • Peak Rare Earths (PEK) Signs Memorandum of Understanding with Shenghe Resources to Support the Development of the Ngualla Rare Earths Project in Tanzania
  • The non-binding memorandum of understanding follows the company’s decision to initially develop the project on a stand-alone basis and produce a high-grade bastnaesite rare earth concentrate.
  • The agreement paves the way for technical cooperation of the project and an opportunity for Shenghe to acquire a working interest in Ngualla
  • The offtake aspect of the MoU stipulates that Shenghe will purchase at least 75% of the project’s output for a period of seven years.
  • Peak shares are trading steadily at 52 cents at 12:58 p.m. AEDT

Peak Rare Earths (PEK) has signed a Memorandum of Understanding with Shenghe Resources to support the development of the Ngualla Rare Earths Project in Tanzania.

This follows the company’s decision to initially develop Ngualla on a stand-alone basis and produce a high-grade bastnaesite rare earth concentrate.

The MoU will run for 12 months and paves the way for the project’s technical cooperation and gives Shenghe the opportunity to acquire a working interest in the Ngualla project.

Under the terms of the MoU, Shenghe will purchase at least 75% of Ngualla’s production, which may include high-grade mineral concentrate or mixed rare earth carbonate (MREC).

The Direct Debit Agreement is for an initial term of seven years, but can be extended if both parties agree.

Commenting on the MoU, Peak Executive Chairman Russell Scrimshaw said Shenghe is uniquely positioned to assist Peak in the development of Ngualla.

“We believe that Shenghe’s successful cooperation with MP Materials provides an excellent roadmap for our commercial, technical and strategic relationship going forward.”

Shenghe CEO Wang Xiaohui said the signing marked an important milestone in Shenghe’s strategic relationship with the company.

“Shenghe considers the Ngualla Rare Earth Project to be the first undeveloped rare earth project in the world.

“We want to work closely with Peak to grow the project through a combination of purchasing, technical and financial support.”

The partnership has confirmed that it will also assess the possibility of exploring other areas of strategic cooperation outside the project.

Peak shares were trading steadily at 52 cents at 12:58 a.m. AEDT.

Carol N. Valencia