Perth-based explorer Peel Mining (ASX: PEX) has received binding commitments for a $23 million capital raising to advance the growth of its South Cobar copper project in western New South Wales.
The raising will comprise a two-tranche placement and a share purchase plan for the issue of approximately 127.7 million new Peel shares at $0.18 each.
Funds will be put towards continued growth of South Cobar’s copper resource and will include exploration permitting and working capital, with the aim of advancing towards development.
Peel plans to expand and delineate the resource based on a detailed technical review highlighting the potential scale of the project in light of significant high-grade hits made at the Mallee Bull and Wirlong targets.
Peel is targeting a standalone 10-year copper operation at South Cobar employing simple, clean metallurgy to produce premium copper concentrates.
Peel’s placement will kick off with a $3.6 million cornerstone investment from experienced minerals explorer Josh Pitt, who was involved in the discovery of the Golden Grove zinc-copper mine (currently owned by 29Metals, ASX: 29M).
Peel directors Jim Simpson, Graham Hardie and Simon Hadfield have also subscribed to the placement.
Mr Simpson has committed $500,000 for 2.77 million shares and will be appointed chief executive officer and managing director of Peel after completion of the first tranche.
Mr Hardie will invest $250,000 for 1.38 million shares while Mr Hadfield will commit $100,000 for approximately 550,000 shares.
The share purchase plan will be offered to eligible shareholders to raise up to $2 million at the same issue price as the placement, taking Peel’s total capital raising to $23 million.
Peel has announced the appointment of experienced mining company director Mark Okeby to the role of chairman following completion of the placement’s first tranche.
Mr Okeby began his resources career in the 1980s and has over 30 years experience as a director of ASX-listed mining and exploration companies.
He is currently a director of Red Hill and Capricorn Metals (ASX: CMM), and has previously served on the boards of Regis Resources (ASX: RRL), Hill 50, Abelle, Metals X (ASX: MLX) and Westgold Resources (ASX: WGX).
Mr Okeby played a strong role in Capricorn’s transition from a small gold developer to one of Australia’s newest gold producers, and a similar role in Regis’ transformation into one of the country’s largest producers.
He was instrumental in the sale of Red Hill’s 40% equity in the Red Hill iron ore joint venture to Mineral Resources last year for more than $400 million in cash, milestone payments and royalties.
Mr Okeby has extensive knowledge of the Australian resources industry and the regulatory regimes around mine development and operation.
He also has significant experience in project development, financing and corporate transactions.