Peak Resources aims to raise A$3.2 million to fund its 100 percent acquisition bid into the Ngualla Rare Earth Project in southern Tanzania.

Peak Resources will place 11.3 million shares at $0.28 per share to buy Zari Exploration Ltd. through a combination of cash and shares of US$6 million cash and the issuing of 24.2 million Peak shares.

The $0.28 issue price is a discount of about 8.2 per cent from the Nov. 11 closing price. GMP Securities Australia Pty Ltd acted as lead manager to the placement.

Gaining full ownership of the Ngualla Rare Earth Project will give Peak Resources greater flexibility in options to develop the project, especially that a maiden JORC Resource estimate has been scheduled for completion in the first quarter of 2012.

The deal is still subject pending approvals from Tanzanian authorities.

Part of the funds that will be raised, along with an existing cash balance of $5.6 million as of end September, will be used to subsidize the cash component of the Ngualla acquisition, continue the project's drilling program, and meet other general working capital requirements.

The extensive Rare Earth Oxide niobium-tantalum and phosphate from the Ngualla Project are one of the largest and better grade discoveries made recently.

It was discovered mineralization is found from the surface and extends over a large area, giving the entire project a huge potential.

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