THE BOURSE WHISPERER: Peel Mining (ASX: PEX) has welcomed established ASX-listed gold producer St Barbara (ASX: SBM) to its share register following the latter’s subscription for $3.28 million of Peel shares.
Pell Mining said the premium-priced placement will give St Barbara an approximate 9.5 per cent stake in the company.
The placement comprises the issue of 16 million ordinary fully paid shares in Peel at a subscription price of 20.5 cents per share.
Peel indicated the funds raised will be used to accelerate upcoming work program, including further drilling at the company’s 100 per cent-owned Wagga Tank VMS prospect, which is scheduled to recommence in April.
The company is busy with drilling continuing at the JOGMEC-funded Wirlong copper discovery, while drilling recommenced last week at the T1 prospect at Mallee Bull targeting high-grade zinc-lead-silver mineralisation for metallurgical testwork purposes.
“We are pleased to welcome a company of the calibre of St Barbara to the share register,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“St Barbara’s funding commitment provides further validation of our strong belief in the mineral potential of the Cobar Superbasin.
“Furthermore, Peel will be able to draw on their extensive experience in deep, underground mining at Gwalia.
‘This technical expertise is highly applicable to Cobar-style deposits, which typically show strong vertical continuity.”
Peel has been active in the Cobar Superbasin since 2010, since when it has established as New South Wales’ predominant greenfield’s explorer by gaining the largest single-company tenure holding in the Cobar Superbasin.
Its work over the journey has resulted in the discovery and definition of several important base and precious metal-rich deposits, including the high-grade Mallee Bull copper-polymetallic resource and the recent Wagga Tank gold-polymetallic and Wirlong copper discoveries.