Peak Rare Earths Limited has signed a binding framework agreement with the Tanzanian Government to support the Ngualla Rare Earth Project.
The agreement sets out the basis of the Tanzanian Government’s agreements for licencing, development and economic benefit sharing.
Under the agreement, the Ngualla Project special mining licence (SML) will include the amalgamation of the original SML application area and a prospecting license.
The signing follows the recent joint establishment of Mamba Minerals Corporation Limited (MML) and Mamba Refinery Corporation Limited (MRL) by Peak and the Government of Tanzania.
Peak will hold an 84 per cent interest in both entities, while the Tanzanian Government will hold a 16 per cent interest.
The parties have also agreed on a series of other documents contemplated by the framework agreement relating to the formation and management of MML and MRL, including a memorandum of articles of association and a shareholders agreement.
Tanzanian Minister for Minerals Dr Dotto Biteko said the project would position the country as a major player in the international rare earths sector and allow it to play a bigger role in supporting decarbonisation efforts.
“It will also support the delivery of employment, investment in social and regional infrastructure as well as a substantial source of revenue for the government in the form of dividends, royalties and taxes,” he added.
Meanwhile, Peak Executive Chairman Russel Scrimshaw said the development of the Ngualla Project would provide a direct foreign investment of more than US$320 million into the Tanzanian economy, create thousands of new jobs for residents and position the country as one of the major rare earth producers outside of China.
“It represents an opportunity to deliver multi-generational opportunities for the people of Tanzania,” Scrimshaw added.
Peak CEO Bardin Davis further commented that the agreement lays the foundations for robust returns for shareholders and sustainable benefits for the community.
