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Peak Resources Talks To Cornerstone Investors For Ngualla Rare Earth Project

Peak Resources (ASX: PEK; OTCQX: PKRLY) has received expressions of interest from several new potential funding partners for the development of the Ngualla rare earth project in Tanzania.

Peak remains in advanced discussions with a number of these parties, with the interest following the termination of negotiations with a possible cornerstone investor on 18 July 2013 - after insufficient progress was achieved.

Ngualla is one of the very few rare earth development projects to successfully produce high purity separated products from its mineralisation and this is an important step in de-risking the project.

The ability to produce separated high purity rare earth oxide adds significant value and allows access to wider markets for Ngualla's products.

Peak has made samples and analyses of the products are available to potential customers for assessment during discussions for off-take agreements.

Ngualla's revenue is underpinned by neodymium and critical rare earths, where increasing demand and undersupply having the potential to support prices.

In total, 85% of the annual revenue (August 2013 relative REO prices and product split as per Scoping Study) is from the high purity Nd - Pr and Mid+Heavy Rare Earth products.

The lower value Ce and La are relative by-products at only 15% of the total revenue.

Metallurgical test work pending

In other Peak news, metallurgical test work at ANSTO Minerals solvent extraction facility near Sydney is nearing completion with the production of the fourth and final high purity separated rare earth oxide, a cerium product, expected shortly.

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