Peak Resources (ASX:PEK) has received firm commitments to raise A$2.24 million through the placement of 8 million new ordinary shares at $0.28 per share.
The placement was to new institutional and sophisticated investors.
Funds raised from the placement will be used to complete the assays on the RC and diamond drill holes for the Ngualla Rare Earth drill program completed on 30 November.
The Ngualla Rare Earth Project is located in southern Tanzania.
In addition, the placment funds will assist beneficiation and metallurgical test work.
The placement will be made is to be issued under the company’s 15% capacity and due to settle on Friday, 6 January 2012.
New Managing director
Meanwhile, Peak has recently announced the appointment of Richard Beazley as its managing director, effective as of 16 January 2012.
The Ngualla rare earth, niobium, tantalum and phosphate project is at a crucial stage. Exploration work completed by Peak through this field season has confirmed a large new discovery and the maiden JORC compliant rare earth resource is scheduled for completion in March 2012.
Beazley has technical and managerial expertise in mining and project development as Peak moves the Ngualla Project forward from exploration discovery through scoping and feasibility studies and into development.