Peak Resources (ASX: PEK) as caught the eye of a U.S. institutional investor who has invested $4 million into the company, which is just weeks before the highly anticipated maiden rare earth JORC Resource is delivered to the market.
The investment was from a placement of 8.3 million shares priced at $0.48 per share and 3 free options for every 4 shares applied for, with an exercise price of $0.55 on or before five years from date of grant.
Before going into a trading halt pending the capital raising details, Peak last changed hands at $0.52.
The funds have already been allocated to progress; beneficiation and metallurgical test work; completion of the maiden rare earth JORC Resource at the Ngualla project; while also funding the new drilling program scheduled for a May 2012 start.
JORC Resource due in March quarter 2012
Peak has forecast that the highly anticipated JORC Resource from Ngualla will be delivered in the March quarter 2012, prepared by consultants Hellman and Schofield.
Data from the entire drilling program has been sent to the consultants, which have commenced work on the resource for the Southern Rare Earth and South West Alluvial Zones at Ngualla.
Highlighting the potential of Ngualla, recent highlights include 75.70 metres at 5.82% REO from surface, including 10.74 metres at 10.1% REO.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25375/peak-resources-us-institutional-investor-buys-a4m-stake-rare-earth-resource-pending-25375.html