- Peak Resources (PEK) has appointed Tony Pearson as Chair and Bardin Davis as Managing Director and CEO
- Mr Pearson has held a non-executive position with the company for the past two years and has over 20 years of experience in leadership roles
- Mr Davis also has nearly two decades of experience – most of which was spent in the mining and energy sectors
- Bardin’s appointment is set to support the development of Peak’s Ngualla Rare Earth deposit in Tanzania
- Additionally, Peak hopes to raise $4 million through a placement and share purchase plan to maintain its financial position and support working capital
- Peak Resources is up at 3 per cent and is currently trading for 3.4 cents
Peak Resources (PEK) has appointed a new Chair and Managing Director and has also announced a $4 million capital raise.
Leadership changes
Peak has appointed Tony Pearson as Chair and Bardin Davis as Managing Director and CEO.
Tony has been an independent Non-Executive Director of the company since August 2018. He has also been Acting Chair since last month.
Currently, Mr Pearson is also the Chair of fellow ASX-lister Cellnet (CLT), a Trustee of the Royal Botanic Garden and Domain Trust and a Non-Executive Director of Communicare and the Foundation and Friends of the Botanic Gardens.
The new Chairman has extensive leadership experience of over 20 years – during which time he held a number of mining finance roles.
Similarly, Bardin Davis has over 20 years’ experience in the mining and energy sectors. He is currently the Chief Financial Officer of UPC/AC Renewables Australia and previously held senior investment banking roles in Hong Kong and Sydney.
The new Managing Director and CEO will initially focus on finalising the receipt of the special mining licence over Peak’s Ngualla Rare Earth deposit in Tanzania.
“Ngualla is a world-class rare earths project that is closely aligned to thematics around decarbonisation, electrification of transport and rapid growth in renewable energy generation,” Bardin said.
“I look forward to working with the team in progressing the development of this project to deliver attractive returns to shareholders as well as multi-generational benefits to the people of Tanzania,” he added.
The Placement
Peak has received binding commitments for a $3.5 million placement.
The company will issue 109,375,000 fully paid ordinary shares at 3.2 cents to sophisticated, professional and other exempt investors.
The issue price represents an 8.5 per cent discount to the last closing price and a hefty 17.7 per cent discount to the five-day volume-weighted average price (VWAP). The placement received strong interest and was well-oversubscribed.
Foster Stockbroking and Aitken Murray Capital Partners were joint lead managers to the placement and will be paid a fee of six per cent, or $210,000, under the placement.
The money raised will be used to maintain Peak’s financial position and cover general operating expenses.
The Share purchase plan
Additionally, Peak is looking to raise a further $500,000 through a share purchase plan (SPP).
Eligible shareholders may apply for up to $30,000 worth of additional shares at 3.2 cents. The SPP will open on Thursday, October 29 and will close on Thursday, November 12.
Peak Resources is up at 3 per cent and is currently trading for 3.4 cents.