ASX-listed Peak Minerals has received a firm commitment to raise A$3.5-million through a strategic placement to a European-based investor at an issue price of $0.035 a share.

The issue price is equal to the last closing price of the company’s shares prior to this announcement, which represents a greater than 12-month high. The new shares will also be subject to a voluntary escrow period of 12 months from the date of issue, reflecting strong support and confidence in the Minta rutile project.

“This $3.5-million placement represents a strong endorsement of the scale and potential of the Minta rutile project and provides the funding necessary to accelerate exploration and development activities on the ground in Cameroon. Importantly, the placement was completed with no discount to the last market closing price, which happened to be at a multi-year high, and will be subject to a voluntary escrow period of 12 months from the date of issue, reflecting strong confidence in the Minta rutile project,” Peak Minerals CEO Casper Adson said.

He added that the support from a strategic European based investor was an indication of the increasing international interest in Peak Minerals and the significance of the high-value rutile, monazite and zircon discovery at Minta.

“With a clear focus on defining a maiden mineral resource estimate and unlocking the full potential of the project, Peak is pleased to maintain momentum at a time of growing global demand for low-carbon titanium and rare earth feedstocks,” Adson said.

The company will use the proceeds from the placement to accelerate exploration at its Minta rutile project in Cameroon, specifically with targeted infill and ongoing reconnaissance drilling, the development of in-country testing facilities and for general working capital purposes.

The new shares have been subscribed to by an existing shareholder of the company who is not a related party of the company. The new shares are subject to a voluntary escrow period of 12 months from the date of issue.

The placement will settle in one tranche, with 100-million new shares to be issued under Peak Minerals’s existing placement capacity. Settlement of the placement is expected to occur on July 7, with the new shares to rank equally with the company’s existing shares on issue. The new shares are subject to a voluntary escrow period of 12 months from the date of issue.