THE BOURSE WHISPERER: Peel Mining (ASX: PEX) has received firm commitments to raise $7 million to continue advancing the company’s 100 per cent-owned Wagga Tank-Southern Nights deposit and 50 per cent-owned Mallee Bull deposit towards development.
Both projects are in the Cobar Basin of New South Wales.
Peel Mining said the funds raised under the Placement will enable it to undertake mining scoping studies at the Wagga Tank-Southern Nights deposit and to continue pre-development activities at the Mallee Bull deposit.
The funds will also be put towards continued exploration for new mineralisation at Wagga Tank-Southern Nights and to continue CSP programs of work with Joint Venture Partner JOGMEC.
The company signalled it would also be able to carry out advanced exploration at some of its exciting regional targets.
The Placement comprised the issue of approximately 22.6 million fully paid ordinary shares at 31 cents each to raise $7 million.
“The company is about to embark on the most exciting phase in its history, as we deliver the maiden resource at the high-grade Wagga Tank-Southern Nights deposit, and finalise plans to bring the Mallee Bull deposit into development,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“We will commence mining scoping studies at Wagga Tank-Southern Nights as well as continue to drill test for new mineralisation associated with this major mineral system.
“This successful raising places the company in a strong financial position to continue advancing these high-grade Cobar assets towards development.”