- Peak Minerals (PUA) has raised $2 million to fund the acquisition of Greenrock Metals and its promising copper tenements
- The four project areas are in WA's Kimberley and Meekatharra regions and appear highly prospective for copper and other metals
- The money raised will fund the $80,000 option fees for the acquisition, as well as an exploration across the company's portfolio
- Peak will also issue around $2 million in shares for the Greenrock acquisition
- Peak Minerals is trading 7.41 per cent higher at 2.9 cents
Peak Minerals (PUA) has raised $2 million to fund the acquisition of Greenrock Metals and its promising copper tenements.
Greenrock Metals has agreements in place to acquire 100 per cent of four prospective copper projects in WA.
The Carson project in the Kimberley covers around 250 kilometres of highly prospective strike along the Carson volcanics. Exploration completed to date has confirmed the presence of both copper oxide and sulphide mineralisation through mapping, geochemistry and drilling. The area is so far completely untested by modern geophysical methods.
The McGowan project, also in the Kimberley, covers an area of 19 square kilometres around 90 kilometres south west of Halls Creek. The area remains underexplored despite first being investigated in the 1960s. There is evidence of copper, gold, silver and zinc mineralisation across the tenement.
The Copper Hills project in the Meekatharra Region has multiple walk up drill targets as assessed through prior drilling, surface geochemistry and untested electromagnetic conductor targets. The mineralisation present resembles that of the nearby Gabanintha gold mine, though it's believed the project area is more prospective for copper than gold.
The Cork Tree project, also in the Meekathara area, is located 28 kilometres south east of Sandfire Resources' (ASX:SFR) DeGrussa copper-gold mine. Drilling has intersected broad oxide copper mineralisation within a 1.2-square kilometre target area. Cork Tree is so far untested by modern geophysics.
Each of the project areas has potential for copper discoveries close to existing infrastructure.
Peak Managing Director David Leavy says the company will employ updated techniques to re-explore the prospective copper discoveries.
"The considerable portfolio of highly prospective copper projects captured within this acquisition position Peak Minerals to capitalise on the ever growing demand for copper within safe jurisdictions," David said.
"We strive to position Peak as being a focussed explorer and developer of the company’s assets utilising the latest in modern exploration techniques to rapidly evaluate and advance the projects within our portfolio."
The agreement needs Peak shareholder approval to go ahead.
To secure the acquisition, Peak will pay $80,000 in option fees, issue around $2 million in shares and grant the Greenrock vendors a one per cent net smelter royalty on future production.
The company will also appoint Wayne Loxton as Managing Director if and when the acquisition is finalised — also pending shareholder approval.
The Capital Raise
Peak will issue 80 million shares at 2.5 cents each, representing a 12.6 per cent discount to 15-day volume-weighted average price.
One free attaching option will also be issued for every five shares subscribed, exercisable at 2.5 cents before December 30, 2022.
Lead manager CPS Capital will take a six per cent cut of the proceeds in addition to 20 million options on the same terms as the placement.
The funds raised will be used to fund the acquisition and exploration across the company's holdings.
Exploration will first focus on Peak's Hill End gold project in New South Wales, before expanding to the newly-acquired Greenrock tenements.
With the $2 million capital raise in the bank, Peak is fully funded for the new acquisition, and hopefully some new discoveries.
Peak Minerals is trading 7.41 per cent higher at 2.9 cents at 3:50 pm AEST.