THE BOURSE WHISPERER: Peel Mining (ASX: announced a placement of 15 million fully paid ordinary shares at an issue price of 40 cents each, raising $6 million.
Peel Mining announced the placement saying it was priced at an 11.1 per cent discount to the company’s last traded price of 45 cents.
The company said the placement had been oversubscribed, which it deemed to reflect support and attention it has been receiving from major shareholders and new sophisticated and institutional investors.
The company will use the proceeds from the placement for exploration activities at its 100 per cent-owned Wagga Tank project, south of Cobar in New South Wales, along with funding pre-development activities at the 50 per cent-owned Mallee Bull polymetallic project, also in the Cobar Basin.
The placement is timely given the further evaluation of the exceptionally high-grade zinc-lead-silver massive sulphide mineralisation recently identified at the Southern Nights prospect at Wagga Tank has become a priority for Peel.
Following completion of the placement, the company will embark on a drilling program of up to 30,000 metres on the tenements.
“We are extremely pleased with the level of interest in the placement from both existing shareholders and new investors as it has ensured we have the funding to properly test Southern Nights and the broader Wagga Tank area,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange
“Early indications are that the project has the potential to host a major mineralised system.”