Peel Mining Ltd (ASX:PEX) will use $7 million raised in an oversubscribed placement to continue advancing its Wagga Tank-Southern Nights project and the 50%-owned Mallee Bull deposits in the Cobar Basin of NSW towards development.
The placement comprised the issue of more than 22.5 million shares at 31 cents each with firm commitments received from institutional, sophisticated and strategic investors.
It sees Peel fully funded to undertake mining scoping studies at Wagga Tank-Southern Nights and to continue pre-development activities at Mallee Bull
READ: Peel Mining completes drilling, maiden JORC resource on track
Settlement of the placement is scheduled to occur on Thursday, June 13, 2019 with new shares expected to be issued and trading on Friday, June 14, 2019.
Peel managing director Rob Tyson said: “The company is about to embark on the most existing phase in its history as we deliver the maiden resource at the high-grade Wagga Tank-Southern Nights deposit.
“We will commence mining scoping studies at Wagga Tank-Southern Nights as well as continue to drill test for new mineralisation associated with this major mineralised system.
“This successful raising places the company in a strong financial position to continue advancing these high-grade Cobar assets towards development.”
READ: Peel Mining and CBH Resources to advance Mallee Bull via exploration decline
Funds raised will be used to:
- Undertake mining scoping studies at the Wagga Tank-Southern Nights deposit and to continue pre-development activities at the Mallee Bull deposit;
- Continue to explore for new mineralisation at Wagga Tank-Southern Nights;
- Continue CSP programs of work with JV partner JOGMEC; and
- Advance exploration at some of the company’s exciting regional targets.
Late last month Peel completed resource drilling at the Wagga Tank project with highlights including multiple broad intersections such as 88 metres at 3.13% zinc, 1.09% lead and 26 g/t silver from 407 metres.
The company is on track to deliver a maiden JORC resource estimate for Wagga Tank-Southern Nights later this month.