The fund raising is being priced at 9c per new share and involves Aitken Murray Capital Markets, Ashanti Capital, Canaccord and Fosters.

If applications exceed the $25 million, a further $5 million may be placed, while a $4 million share purchase plan is also to be initiated.

Peak's plans involve a rare earths mine in Tanzania (Ngualla) and a refinery to be built in north east England.

Initial capex for the integrated venture has previously been put at US$365 million.

The project is planned to produce 9,300t per annum of rare earth oxides, including 2800t of key permanent magnet inputs NdPr.

Peak believes it is differentiated from peers by the high grade and scale of the Ngualla resource.

Shares in Peak were trading at 11c prior to a trading halt being called for the fund raising.

At that price the company was capitalised at $179 million.