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Peak Resources (ASX:PEK) - Outgoing CEO, Rocky Smith - The Market Herald
Outgoing CEO, Rocky Smith
Source: Peak Resources
  • Peak Resources (PEK) has closed its $500,000 share purchase plan (SPP) early due to excess demand, and scaled the offer up to $850,000
  • Shares in the SPP were offered at 3.2 cents — a 17.7 per cent discount to the five-day volume weighted average price before the company's recent $3.5 million placement
  • With $4.35 million now in the bank, Peak is funded for the next phase of development at its Ngualla rare earths project in Tanzania
  • Peak Resources closed Tuesday's session 2.56 per cent higher at 4 cents

Peak Resources (PEK) has closed its $500,000 share purchase plan (SPP) early due to excess demand, and scaled the offer up to $850,000.

Seek Peak

Investors were quick to join the queue, with the offer being at least 70 per cent oversubscribed before the early closure.

The offer was meant to close on Thursday November 12, but instead wrapped up on Tuesday 10.

The SPP was intended to supplement a recent $3.5 million placement, bringing the total capital raised to $4 million.

Instead, the company will now bank $4.35 million before costs.

SPP shares were offered at the same price as the placement — 3.2 cents each — which represents a 17.7 per cent discount to the five-day volume weighted average price before the placement was announced.

Shares will be issued next week once the scale-up is finalised.

Outlook

The funds raised will go towards the company's flagship Ngualla rare earths project in Tanzania.

This includes maintaining the company's financial position and assets, and covering general operating expenses in connection with the long-awaited grant of a Special Mining Licence by the Tanzanian government.

The funds will also support the negotiation of a development framework agreement for the project.

So there's still a few hurdles, but at least Peak has money in the bank to see it through the next phase of development.

Peak Resources closed Tuesday's session 2.56 per cent higher at 4 cents.


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