Peel Mining’s share purchase plan attracts $10.3m in subscriptions
Peel Mining has revealed high copper recoveries and concentrate grades from the Wirlong deposit.
After a $21 million placement, Peel Mining (ASX: PEX) has closed out its heavily oversubscribed share purchase plan, which attracted $10.3 million in subscriptions – more than five times the $2 million originally sought.
The share purchase plan initially sought to raise $2 million but gained almost $10.3 million in subscriptions.
In light of the demand, Peel exercised its discretion to accept a little more than $8 million in subscriptions from existing shareholders, which will see 44.81 million new shares issued at $0.18 each.
Peel chief executive officer and managing director Jim Simpson said the heavily oversubscribed share purchase plan reflects the strong outlook for the company’s South Cobar copper project in western New South Wales.
The share purchase plan follows a $21 million two-tranche placement at the same issue price that was launched in February after it received binding commitments from sophisticated, institutional and professional investors.
The $0.18 issue price was a 10% discount to the company’s last traded price prior to announcing the equity raisings.
Josh Pitt cornerstones placement
Cornerstoning the placement was Josh Pitt with a $3.6 million investment.
Peel noted Mr Pitt has a long history in the resources sector and discovered the Golden Grove zinc-copper mine.
Mr Pitt is also a founder and major shareholder in Red Hill (ASX: RHI), which recently sold its Red Hill iron ore interests to Mineral Resources (ASX: MIN) for $400 million in cash milestone payments and royalties.
Equity raising to fund advancing South Cobar project
Peel will use the raising funds to advance its South Cobar project including building resources, securing permits and providing working capital.
South Cobar covers 3,200sq km of tenements and hosts the Wirlong and Mallee Bull copper deposits, which have combined resources of 9.2 million tonnes at 2% copper and 25 grams per tonne silver.
Peel is targeting a 10-year standalone copper operation at South Cobar.
Mr Simpson said drilling was underway at Mallee Bull with extensional drilling to restart at Wirlong early next month.
This will continue throughout the year to increase resources and transition Peel from an exploration to development.