Peak Rare Earths Limited (ASX: PEK) (“Peak” or the “Company”) is pleased to announce
that on Monday 17 April 2023 a binding Framework Agreement was signed with the
Government of the United Republic of Tanzania (“Government of Tanzania”) with respect to the Ngualla Rare Earth Project.
The Framework Agreement sets out the basis of the Government of Tanzania’s agreement for the licencing, development, economic benefit sharing and the formation of a joint venture between Peak and the Government of Tanzania with respect to the development and operation of the Ngualla Project.
The signing of the Framework Agreement follows the recent joint establishment of the
following companies by Peak and the Government of Tanzania:
• Mamba Minerals Corporation Limited (“MML”) – that will own and operate the Ngualla
Project; and
• Mamba Refinery Corporation Limited (“MRL”) – that will own and operate any future
Tanzanian refining and downstream operations.
Both entities are owned 84% by Peak (via a 100% owned UK subsidiary, Ngualla Group UK Limited) and 16% by the Government of Tanzania (via the Treasury Registrar).
Peak and the Government of Tanzania have also agreed a series of other documents
contemplated by the Framework Agreement relating to the formation and management of MML and MRL, including Memorandum and Articles of Association and a Shareholders Agreement.
The Cabinet of Ministers (“Cabinet”) of the Government of Tanzania approved a Special
Mining Licence (“SML”) application for the Ngualla Project in July 2021. Under the Framework Agreement, the Ngualla Project SML will include the amalgamation of the original SML application area, a Prospecting Licence (PL 10897/2016) and a recently expired Prospecting Licence (PL 9157/2013). It is expected that the SML will be formally granted to MML shortly.
Peak would like to extend its appreciation and gratitude to the Government of Tanzania for its strong support for the Ngualla Project. In particular, the Company would like to thank Her Excellency Samia Suluhu Hassan, the President of Tanzania; Cabinet members; Honourable Minister for Minerals; Honourable Deputy Minister for Minerals; Permanent Secretary for Minerals; the Chair and members of the Special Presidential Government Negotiation Team; the Chair and members of the Mining Commission; Honourable MP for Songwe Province; Regional Commissioner for the Songwe Region; District Commissioners of the Songwe District; and all other officials involved in assisting Peak to reach this transformational milestone.
Bardin Davis, Chief Executive Officer of Peak, further commented: “The Framework Agreement lays the foundations for robust returns for Peak shareholders, long-term and sustainable benefits for the community and a substantial source of future
revenue for the Government of Tanzania.
It further elevates Ngualla’s position as the premier undeveloped rare earth project in the world with high-grade Ore Reserves, low levels of radionuclides, a fully piloted flowsheet, and a completed Updated Bankable Feasibility Study.
