🚀 Big move in the Rare Earths sector

Peak Rare Earths jumps 150% after striking a $158M buyout deal with China’s Shenghe Resources.

Shares in Peak Rare Earths Ltd surged 150% to A$0.30 after confirming a A$158 million takeover offer from China’s Shenghe Resources Holding Co Ltd, via its subsidiary Ganzhou Chenguang Rare Earths New Material Co.

The deal would give Shenghe full ownership of the Ngualla rare earths project in Tanzania, one of the world’s richest sources of Neodymium-Praseodymium (NdPr)—critical minerals used in permanent magnets for EVs and wind turbines.

The sharp rally followed a trading halt on the ASX, during which Shenghe announced the offer to its investors. Peak resumed trading on Thursday after confirming the deal.

Under the proposed terms, Chenguang—already a major shareholder and offtake partner—will pay A$150.5 million, plus an additional amount tied to a A$7.5 million entitlement offer. If fully subscribed, shareholders stand to receive A$0.359 per share, representing a 199% premium to Peak’s last close.

Peak’s independent board has recommended the offer, barring a superior proposal. The deal replaces a previously announced joint venture agreement from 2023, as geopolitical scrutiny around Chinese investments in Australia’s critical minerals sector continues to intensify.

The acquisition still requires shareholder approval, as well as regulatory sign-offs from China, Tanzania, and Australian courts, with a vote expected in September.

This development comes as Australia explores new strategies to secure its critical minerals supply chains and reduce reliance on Chinese processing, with support being sought by other major players such as Iluka Resources.

Read More: Peak Rare Earths surges 150% on $158 million Shenghe buyout deal | ASX:ILU

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