Peak Resources (ASX: PEK) aims to develop into a medium sized mining house based on exploration and development.
The company holds an extensive portfolio with the main focus the Ngualla Rare Earth Project in southern Tanzania. Additionally, Peak holds a number of gold projects comprising a mix of brownfield, greenfield and advanced exploration prospects within Tanzania and Western Australia.
Peak Resources places $1.53m in shares from SPP to fund the Ngualla rare earths project
Peak Resources (ASX: PEK) has placed just under 2.8 million shares at $0.55 to raise A$1.53 million.
The placement was made to clients of Shaw Stockbroking and represents the completion of the placement of shortfall shares from the company's share purchase plan from early May - which was to raise up to $5.9 million.
Peak will use the funds for a continued reverse circulation and diamond drilling campaign at the Ngualla rare earth project in Tanzania.
Last month at the project the company announced 14 angled reverse circulation holes for 1760 metres had been completed to the planned depth of 120 metres, with initial assays forecast to be received in late July from SGS Laboratories in Perth.
Peak said sample recovery has improved this year compared to last year, with consistently higher sample weights and less variation in sample size achieved in this early phase of the program.
Added to the improved samples is a faster exploration rate, with drill rig production rates improved due to more powerful equipment.
Drilling at the project is designed to provide sufficient data for an initial JORC Resource to be completed for both the bedrock and alluvial zones of rare earth mineralisation, which were discovered by the company in 2010.
Rare earth mineralisation was intersected by previous drilling in the Southern Rare Earth Zone at Ngualla, and is enriched in the weathered zone of the carbonatite.
