PERTH (miningweekly.com) – ASX-listed Peel Mining is hoping to raise up to A$32.2-million to allow a development decision on its South Cobar copper project, in New South Wales.
The company on Wednesday told shareholders that it has received firm commitments from institutional, sophisticated and professional investors for the placement of 70-million shares, at a price of 26.5c each, to raise an initial A$18.55-million.
The shares will be placed under the company’s existing placement capacity, and will not require shareholder approval.
In addition to the share placement, the company will also undertake a pro-rata non-renounceable entitlement offer allowing shareholders to subscribe for one new Peel share for every eight shares held, also at a price of 26.5c each, raising an additional A$13.65-million.
“The demand we have received for the placement from existing and new institutional and professional investors has been overwhelming, strongly endorsing our plans to become Cobar’s next copper development company” said Peel MD Rob Tyson.
“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.
“The consolidation of our Cobar assets last year appears particularly fortuitous given the subsequent strong rally in copper pricing; we are now looking to capitalise on our position as one of the few Australian high-grade copper development companies by pursuing an expeditious development decision.”