Appian Capital Advisory LLP announced Wednesday that it has substantially exited its position in Peak Rare Earths (ASX: PEK) and through a solely owned subsidiary, has sold its 19.9% interest to global rare earth group Shenghe Resources Holding Co.
The sale of Appian鈥檚 position was priced at A$0.99 per share, representing a substantial 24.5% premium to Peak鈥檚 shares pre-closing. As a leading rare earth major with a global operational footprint, Shenghe will be a technical and financial partner to Peak going forward.
Appian said in a media release it believes Peak鈥檚 Ngualla rare earth project in Tanzania is potentially the best undeveloped rare earth asset in the world with technical advantages and long-term commercial potential and that the rare earth project can contribute to global decarbonization initiatives via the manufacture of permanent rare earth magnet critical for the energy transition.
鈥淭he sale to a rare earth major is a strong endorsement of Peak鈥檚 world-leading project, enabling it to move on to the next stage of development,鈥� Michael W. Scherb, Appian CEO said in a news release.