Peak Rare Earths Ltd share price is around AUS$0.68
At the end of Feb they announced that a Chinese REE firm - Shenghe - had bought
just under 20% of their shares . They ( Peak) have always championed how they
wanted to be a non- China source of REE but it seems that their long time
finance source - Appian Holdings - has other ideas and was clearly happy to
sell a large chunk of shares. The joys of a free market and cash rich China !
This is part of the notice below. They say they intend to remain focussed on
their objectives and their share price is within a range of what we might
expect until something more significant happens.
This has always been a long term hold waiting for either a serious buy out or
when REE become scarcer or when they get to actual production.
recommend : Hold
- Shenghe InterestAs announced on 14 February 2022, Shenghe Resources
Holding Co Ltd (“Shenghe”), a Chinese rare earth company, acquired a 19.9%
interest in Peak from Appian Pinnacle Holdco Limited (“Appian”), through its
subsidiary, Shenghe Resources (Singapore) Pte Ltd.Whilst Peak was not consulted
or involved in any discussions or negotiations between Appian and Shenghe, it
does view the investment as a strong endorsement of the world- class nature and
strategic value of the Ngualla-Teesside project.As previously announced,
Shenghe is not entitled to Appian’s previous shareholder rights, which included
director nomination rights. The Company confirms that it is not entertaining
any changes to its board, governance or management structure at this time.In
response to current situation, Peak has retained legal and financial
advisers.Committed to an Integrated, Independent Ngualla-Teesside ProjectPeak
is aware of certain speculation that it may seek to change its strategy
following Shenghe’s investment. Peak confirms it remains committed to the
development of an integrated Ngualla-Teesside project and to the production of
an NdPr Oxide rather than a concentrate or mixed rare earth carbonate.
