High fives: Huge support sees massive oversubscription for Peel’s copper-focused SPP
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Peel shareholders have overwhelmingly backed a capital raising to fund ongoing work at South Cobar copper – with subscriptions received for five times the $2m it had sought.
The company has decided to accept subscriptions totalling just over $8m and has scaled back subscriptions pro rata to the size of the applicants existing shareholding at the record date.
Peel Mining (ASX:PEX) was initially looking for a cool $2m through the issue of shares priced at 18c through the share purchase plan (SPP), which complemented the placement to sophisticated, institutional and professional investors which raised about $21m.
The placement had included a cornerstone $3.6m investment from Red Hill founder Josh Pitt.
Proceeds from both will expand and delineate resources at the Mallee Bull and Wirlong deposits within the project.
“The strong show of support from shareholders is much appreciated and reflects the strong outlook for the company and its South Cobar copper project,” managing director Jim Simpson said.
“We are currently drilling at Mallee Bull and extensional drilling will recommence at Wirlong in early April and will continue throughout the year as we target increasing the existing resources as part of the company’s evolution from an explorer into a project developer.”
Mallee Bull hosts a resource of 6.76Mt at 1.8% copper, 31g/t silver, 0.4g/t gold, 0.6% lead and 0.6% zinc (2.6%CuEq), or 119,000t of contained copper and 175,000t of copper equivalent metal, while Wirlong has a resource of 2.45Mt at 2.4% Cu and 8.7g/t Ag containing 57,900t copper and 686,000oz of silver.
However, a technical review has indicated the project’s potential for growth, given the geology is analogous to the CSA mine about 100km to the north. CSA Mine was sold last week to Metals Acquisition Corporation (MAC) for US$1.1B, showing the high value these types of deposits can deliver.
Drilling has already returned high-grade hits outside of the current resource envelope, which remains open at depth and along strike.
This article was developed in collaboration with Peel Mining, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.