EXIT: Peak Resources repays Ngualla Rare Earth Project financing facility and royalty
Peak has entered into a royalty repayment agreement with respect to the repayment of a financing facility made available by Appian, pursuant to a royalty agreement entered into between the parties in September 2014. The repayment agreement includes agreement on the payment of accrued interest on the principal, the removal of security arrangements in connection with the royalty, and the termination of the royalty agreement and the 2% life-of-mine gross revenue royalty.
The option to enter into the royalty agreement, which provides a 2% gross revenue royalty over the life of the Ngualla Project, was granted to Appian as part of the financing package for the Bankable Feasibility Study (“BFS”) for the Ngualla Project announced by the Company in September 2014. In July 2015, Appian exercised its option and extended a US$5 million financing package to the Company as part of the funding for the BFS.
The repayment agreement enables the Ngualla Project to transfer the Ngualla mining license into a JV company with the Tanzanian government and raise further long-term financing. These proceeds will be used to develop the Ngualla Project and also the Teesside Refinery in the UK.