Peel moves ahead with Mallee Bull deal

3rd August 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Junior Peel Mining has exercised its pre-emptive rights to acquire joint venture (JV) partner CBH Resource’s 50% stake in the Mallee Bull base metals project, in New South Wales, launching its one-for-eight pro-rata non-renounceable entitlement offer.

The company in July this year announced plans to raise A$17.1-million through a share placement and entitlement offer, to fund the Mallee Bull buy.

The share placement to institutional, sophisticated and professional investors has closed, and raised an initial A$10.5-million before tax.

Peel on Monday said that the entitlement offer, priced at 17.5c a share, will open on August 11, with the aim of raising more than A$6.6-million. The offer will close on August 20.

Following the completion of the entitlement offer, the company will have issued more than 37.9-million shares resulting in some 341.6-million shares on issue.

Mallee Bull contains a Joint Ore Reserves Committee-compliant resource of some 6.76-million tonnes, at 1.8% copper, 31 g/t silver, 0.4 g/t gold, 0.6% lead and 0.6% zinc.