Chenguang Rare Earths to accelerate Ngualla project via acquisition

Ganzhou Chenguang Rare Earths New Material Co., Ltd., a wholly-owned subsidiary of Shenghe Resources, proposes to acquire a 100% equity interest in Peak Rare Earths Limited through a "Scheme Implementation Deed" and related agreement attachments, for a total consideration of AUD158 million, as the company moves to accelerate the development of Ngualla Rare Earth Project in Tanzania.

Peak Rare Earths' core asset is the Ngualla Project, located in southern Tanzania. At a 1% cutoff grade, the JORC (2012)-compliant resource estimate for the project is 214 million tonnes with an average grade of 2.15%, equivalent to 4.61 million tonnes of rare earth oxides (REO). The project has a proven rare earth reserve of 18.5 million tonnes with an average grade of 4.8%, equivalent to 887,000 tonnes of REO. Praseodymium and neodymium oxides account for approximately 21.26% of the total REO content. The project has already obtained a mining license.