Latest news with #PeakRareEarths
News.com.au
15-05-2025
- Business
- News.com.au
Resources Top 5: Chinese producer grabs ownership of junior explorer Peak Rare Earths
China's Shenghe Resources to snap up Peak Rare Earths in entitlement deal Brightstar fires up another round of ore processing under its agreement with Genesis Minerals at Laverton RMI, NIM and OMX all up on no news These are your standout small cap resources stocks for Thursday, May 15, 2025. Peak Rare Earths (ASX:PEK) Shenghe Resources' subsidiary, Ganzhou Chenguang Rare Earths New Material Co, has agreed to acquire PEK under a binding scheme implementation deed with the junior explorer. Under the deal, the Chinese partly state-owned rare earths producer will buy PEK for $15.05m, plus an amount equal to the funds raised under a proposed ~A$7.5 million entitlement offer. If the full amount of ~$7.5 million is raised pursuant to the entitlement offer and the scheme is implemented, PEK shareholders will receive ~35.9c per PEK share in cash, a mega 199% premium to PEK's closing share price of 12c per share on May 9. US$2.9b market cap company Shenghe Resources is listed on the Shanghai stock exchange and is an existing shareholder in PEK, with binding off take rights to rare earths production from the Ngualla rare earth project in which PEK holds an 84% interest. Shenghe is also the largest importer of rare earth concentrate into China with its operations spanning rare earth mining, beneficiation, refining, trading and alloy and metals production. The two companies signed a non-binding term sheet in July 2024 covering an integrated investment, funding and development solution for Ngualla, with the proposed transaction entailing Shenghe investing ~A$96m to subscribe for a 50% interest in Peak's wholly owned subsidiary, Ngualla Group UK (NGUK). Since that time, PEK and Shenghe have made significant progress toward finalising binding transaction terms for the NGUK transaction. However, recent geopolitical and regulatory changes have heightened the risks associated with establishing a formal joint venture. In response, PEK and Shenghe have evaluated other deal structures that could offer greater clarity and certainty for the project, with the goal of achieving a more favourable outcome for both companies and their investors. PEK believes the scheme delivers a superior outcome compared to the NGUK transaction for several reasons – the scheme has the potential to provide a significantly higher value outcome for PEK shareholders on a risk-weighted basis, with an implied value for PEK of A$150.5 million (pre-entitlement offer), compared to A$96m for Peak's interest in Ngualla under the NGUK transaction; the scheme is unlikely to give rise to the same geopolitical and regulatory risks that ultimately resulted in the parties agreeing to discontinue the NGUK transaction; and PEK shareholders will have an opportunity to realise an attractive price for their shares and avoid potential risks around the development, operation and funding of Ngualla. PEK's Ngualla asset in Tanzania is one of the largest and highest grade undeveloped rare earth deposits in the world with a multi-generational resource of 214Mt over an initial 24-year mine life. Brightstar Resources (ASX:BTR) Under its ore purchase agreement with Genesis Minerals, Brightstar Resources has launched a second processing campaign at the Laverton Hub, taking advantage of elevated gold prices. The May campaign will process the ~55,000t of ore grading more than 2g/t gold that has been delivered to the Laverton mill ROM pad. It follows the first parcel of 56,449t of ore which reconciled at a blended head grade of 2.51g/t gold – higher than the initial blended estimate of +2g/t gold – and achieved a strong recovery rate of 94.25% to deliver 4297oz of gold. With no hedging contracts in place, the company stands to benefit directly from gold's current high price levels of roughly US$3,185 (A$4,955) per ounce. (Up on no news) As part of its exploration program at the Mpanda copper-gold project, RMI has initiated lab testing on soil and auger samples collected from the Stalike and Kabungu prospects. Combined with previous results from auger drilling, trenching, rock chip and soil sampling for the two prospects, the objective is to generate high potential drill targets. Previous results from the project have returned impressive gold and copper grades from rock samples up to 36.7g/t gold and 11.89g/t copper from Kabungu and 13.58% copper and 3.24g/t gold from Stalike. RMI executive chairman Asimwe Kabunga said a targeted drilling program is planned for the Stalike and Kabungu prospects following completion of this current soil and auger sample analysis work stream. 'Mpanda is clearly a richly endowed mineralised system,' he said. 'The extensive number of small-scale operations demonstrate that systematic, modern exploration has the potential to define larger scale copper-gold systems.' Nimy Resources (ASX:NIM) (Up on no news) Nimy still has a wind in its sail following the announcement yesterday of a Phase 2 drilling campaign for the development of a JORC resource at the Block 3 gallium discovery in WA. The Block 3 prospect covers an area of 3km x 1.5km, with the current exploration target of 9.6Mt to at an average grade ranging from 39ppm to 78ppm gallium only covering the Eastern segment of this zone. Critical mineral gallium is key component of many advanced technologies including high-speed semiconductors, LEDs, solar cells and defence systems. Gallium is typically produced as a by-product of alumina and zinc refining, with China accounting for 98.4% of global gallium production in 2024. NIM's drilling program is expected to take three weeks with assays due as soon as feasible. Orange Minerals (ASX:OMX) (Up on no news) Although OMX has no news to report today, the company carried out a field mapping program at the Calarie project in Forbes, NSW, last month after recently securing land access agreements. The land access agreements allowed for exploration to begin over newly accessed ground at the Bald Hill, Mary's Dream/ Toss a Penny, McMillans and Nibblers Hill prospects. The Calorie asset boasts an inferred resource of 0.87Mt at 1.83 g/t gold, containing 50,796oz of gold with previous drill results returning 10.6m at 5.63m g/t gold and 4.6g/t gold from 39.1m. A targeting review is also underway with detailed drone-based magnetic surveys planned across the Mary's Dream and Nibblers Hill prospects to better delineate key structural trends. Previous drilling at these prospects was shallow and did not adequately test the potential for primary mineralisation. Further drilling will be considered following the completion of the targeting review.
Reuters
15-05-2025
- Business
- Reuters
China's Shenghe Resources to buy Australia's Peak Rare Earths for about $97 million
May 15 (Reuters) - Peak Rare Earths ( opens new tab said on Thursday that Chinese rare earths producer Shenghe Resources ( opens new tab will acquire the Australian firm for A$150.5 million ($96.62 million), in addition to the full amount raised under Peak's proposed A$7.5 million entitlement offer. Under the deal, the Chinese miner's unit Ganzhou Chenguang Rare Earths New Material will buy Peak for a minimum of A$0.359 per share in cash, if the entitlement offer is raised in full. The offer price represents a 199% premium to Peak's last closing price, which sent the shares up 150% to A$0.3 in early trading. Shenghe Singapore already owns about 19.8% of the Australia-listed rare earths firm and has the rights to buy, opens new tab all of the rare earths concentrate from Peak's Ngualla Project in Tanzania. "We are also mindful of the importance to Tanzania of developing the Ngualla Project and believe that Shenghe is well positioned to partner with the Government of Tanzania to successfully develop this world-class project," Peak Chairman Russell Scrimshaw said in a statement. The deal is subject to a shareholder vote and approval from regulatory bodies in China, Tanzania, and Australia. ($1 = 1.5576 Australian dollars)
Yahoo
19-02-2025
- Business
- Yahoo
Peak Rare Earths Decline Means Insider Profits Down To AU$73k
Insiders who bought Peak Rare Earths Limited (ASX:PEK) stock lover the last 12 months are probably not as affected by last week's 11% loss. After taking the recent loss into consideration, the AU$290.0k worth of stock they bought is now worth AU$362.5k, indicating that their investment yielded a positive return. While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing. View our latest analysis for Peak Rare Earths The Non-Executive Director Ian Chambers made the biggest insider purchase in the last 12 months. That single transaction was for AU$130k worth of shares at a price of AU$0.10 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.13. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices. While Peak Rare Earths insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below! Peak Rare Earths is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. It's good to see that Peak Rare Earths insiders have made notable investments in the company's shares. In total, insiders bought AU$290k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook. I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Peak Rare Earths insiders have about 3.5% of the stock, worth approximately AU$1.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership. It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Peak Rare Earths stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Peak Rare Earths (2 are a bit concerning!) that we believe deserve your full attention. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
