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- Peel Mining (PEX) has received commitments from investors to raise $18.55 million through a placement of 70 million shares, priced at 25.6 cents per share
- The placement is strongly supported by several high-quality Australian institutional and professional investors
- PEX will also undertake a non-renounceable entitlement offer to raise an additional $13.65 million
- The explorer will use the $32.2 million raised (before costs) to fund studies needed to reach a development decision for its copper-focused South Cobar Project in NSW
- Peel is expected to issue the shares to eligible shareholders on March 17
- PEX shares have fallen 11.3 per cent, trading at 27.5 cents each
Peel Mining (PEX) has received commitments from institutional, sophisticated and professional investors to raise $18.55 million, before costs, through a new share placement.
The capital raising exercise will see Peel issue 70 million new shares, priced at 26.5 cents per share.
In a bid to raise additional capital — up to $13.65 million before costs — the Perth-based minerals explorer will also undertake a pro-rata, non-renounceable entitlement offer of one new share for every eight shares held by eligible shareholders on the record date.
Net proceeds from the capital raising, which are expected to come in at $32.2 million before costs, will be used to accelerate drilling and studies to reach a development decision at the explorer’s copper-focused South Cobar Project (SCP) in New South Wales.
Other activities will include completion of resource drilling and estimation at the Wirlong, Mallee Bull and Southern Nights deposits to primarily indicated classification, as well as an Environmental Impact Study at the SCP, capital raising costs and ongoing working capital.
Peel Mining’s Director, Rob Tyson, said investors’ demand for the placement has been overwhelming.
“The funds from the placement and the entitlement offer will be applied to achieving a maiden resource at Wirlong and higher confidence resources at Mallee Bull and Southern Nights, which in aggregate, will form the basis for development studies and investment decision making,” Rob said.
“The consolidation of [Peel’s] Cobar assets last year appears particularly fortuitous given the subsequent strong rally in copper pricing,” he added.
“We are now looking to capitalise on our position as one of few Australian high-grade copper development companies by pursuing an expeditious development decision.”
Peel intends to issue the shares on March 17, with placement participants eligible to take up the entitlement offer.
PEX shares have fallen 11.3 per cent on Wednesday and are trading at 27.5 cents per share at 2:10 pm AEDT.
