Peak Rare Earths' (ASX:PEK) shareholders approved a key resolution for the company's proposed acquisition by Shenghe Resources via a conditional scheme of arrangement, according to a Tuesday filing with the Australian bourse.

A total of 98.26% of the votes cast by eligible shareholders in the meeting were in favor of the acquisition, per the filing.

The company will seek orders from the Supreme Court of New South Wales for the approval of the scheme at the hearing currently scheduled for Sept.18, the filing added.

Upon approval, the company intends to submit a copy of the Court's orders to the Australian Securities and Investments Commission on Sept.19, the company said.

Shares of the company rose 4% in recent Tuesday trade.