Australian miner Peak Resources has announced it will place 8 million new ordinary shares at $0.28 per share to be able to raise A$2.24 million to complete the initial works on the Ngualla Rare Earth Project in southern Tanzania.

The placement is more geared for new institutional and sophisticated investors.

Funds that will be raised will be used to complete the assays on the RC and diamond drill holes that was completed on November. It will also assist beneficiation and metallurgical test work on the project.

The placement will be issued under the company's 15 per cent capacity, due to settle on January 6.

The Ngualla rare earth, niobium, tantalum and phosphate project is 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.

The project is now at a crucial stage since the maiden JORC compliant rare earth resource is scheduled for completion in March 2012.