Peak Rare Earths Clears Key Tanzanian Approvals in Shenghe Takeover Bid

Advancing the Acquisition

Peak Rare Earths Limited (ASX, PEK) has taken a significant step forward in its proposed acquisition by Ganzhou Chenguang Rare Earths New Material Co., Ltd, a wholly owned subsidiary of Shenghe Resources Holding Co., Limited. The company announced that the Special Mining Licence (SML) for its flagship Ngualla Project in Tanzania remains valid and free from any outstanding default notices, satisfying a key condition precedent for the Scheme of Arrangement under which the acquisition is structured.

In addition, the Tanzanian Mining Commission has formally consented to the acquisition by Australian Mining Investment Management Pty Ltd, the nominated subsidiary of Chenguang. This regulatory green light removes a major hurdle, providing greater certainty around the transaction’s progression.

Remaining Conditions and Approvals

Despite these positive developments, the Scheme remains contingent on several critical approvals. Peak shareholders must approve the deal at an upcoming Scheme meeting, while regulatory clearances are still required from Chinese authorities and the Fair Competition Commission of Tanzania. Furthermore, an independent expert must conclude that the Scheme is in the best interests of Peak shareholders, and requisite Australian court approvals must be obtained.

Other customary conditions also apply, including the absence of material adverse changes or breaches of warranties, and no government agency restraining the Scheme. These layers of approval reflect the complexity and cross-jurisdictional nature of the transaction.

Board Endorsement and Shareholder Outlook

The Peak Independent Board has unanimously recommended that shareholders vote in favour of the Scheme, provided no superior proposal emerges and the independent expert continues to endorse the transaction. Notably, Dr Shasha Lu, Managing Director of Shenghe Resources Overseas Development and a non-executive director of Peak, has abstained from the recommendation process to avoid conflicts of interest.

Board members eligible to vote have also indicated their intention to support the Scheme by voting their shares in favour. This unified stance from Peak’s leadership aims to reassure shareholders and the market of the deal’s strategic merit.

Looking Ahead

With the Tanzanian mining licence and regulatory consents now secured, the acquisition process has cleared some of its most critical regulatory barriers. However, the transaction’s completion still hinges on shareholder approval and further regulatory scrutiny, particularly in China and Tanzania’s competition landscape. Investors will be watching closely for the outcomes of these next steps, which will ultimately determine whether the deal proceeds to completion.