The Ngualla rare earth project, in Tanzania, has received robust support from leading development finance institutions (DFIs), export credit agencies and commercial banks.
In a funding update on Monday, ASX-listed Peak Rare Earths revealed it had received indicative, nonbinding, expressions of interest totalling $176.6-million. This funding momentum comes against the backdrop of an estimated upfront capital cost of $287-million for the Nugualla project.
The funding appetite includes contributions from various prominent institutions, with $52.6-milion from a South African DFI, $65-million from the Development Bank of Southern Africa, $50-million from CRDB Bank Tanzania, which committed to arrange a tranche, and $9-million from an East African commercial bank.
In addition, discussions are under way with Export Credit Insurance Corporation of South Africa to provide political risk insurance and commercial risk insurance cover to support a senior debt tranche linked with the required level of South African content being achieved.
Peak reported that discussions were continuing with other financial institutions with the aim of having a fully formed funding consortium by the end of the June quarter.