Peak Rare Earths (ASX:PEK) is set to raise AU$6 million via the placement of around 60 million shares priced at AU$0.10 apiece, according to a Tuesday filing with the Australian bourse.
In tranche one, 40 million shares will be issued, while the remaining 20 million shares will be issued in tranche two, subject to shareholder approval, the filing said.
The company will also offer eligible shareholders on the register as of Monday, Nov. 4, the opportunity to participate in a share purchase plan, capped at AU$30,000 per shareholder, to raise to a further AU$2 million.
Proceeds will be used for the costs associated with a binding transaction with Shenghe Resources (Singapore), and advance the Ngualla project in Tanzania to the final investment decision, as well as project and corporate costs, according to the filing.
Peak Rare Earths shares fell nearly 37% in afternoon trade Tuesday, hitting an all-time low.
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