Peak Rare Earths (PEK AU): Shenghe Bumps And Declares Terms Final

• On the 15th May, Peak Rare Earths (PEK AU) entered into a non-binding Offer, by way of a Scheme, with Shenghe Resources (600392 CH) @A$0.389/share, a punchy 199% to undisturbed.

• Shenghe holds 19.86% in Peak, and has offtake rights to 100% of the rare earth production from the 84%-held Ngualla project in Tanzania.

• The Scheme Booklet was registered with ASIC on the 11th August with a 16th September Scheme Meeting. Shenghe has now bumped terms to A$0.443. Declared final. Scheme Meeting remains unchanged.

Peak is illiquid. Look away now if this is not your thing.

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The Trade:

• This looks clean.

• Tanzania's FCC will give the acquisition a hard look; but should approve, given Shenghe's offtake agreement.

• If small illiquid arbs are your thing, buy up to A$0.43/share.

• My guess is that the key PRC reg approvals will be arrive shortly after - or just before - the Scheme vote.