Australian mineral exploration and development company Peninsula Mines has received commitments to raise approximately $1.6 million through an over-subscribed placement of shares to institutional and sophisticated investors.
“The Placement will result in the issue of approximately 76 million ordinary fully paid shares in the Company at an issue price of 2.1 cents per share,” Peninsula told the ASX.
“Other than shares to be issued to the Company’s major shareholder, Aurora Minerals Ltd, and Directors and Executives of Peninsula, the issue will be made to institutional and sophisticated investors under ASX listing rule 7.1.”
According to the company, Aurora Minerals has committed to invest $250,000 as part of the Placement, with Peninsula’s Directors and Executives to commit a total of $35,000.
Peninsula said the proceeds of the Placement will be used to fund the next stage of exploration leading to drilling on its priority graphite, lithium, gold-silver and/or zinc-silver targets in South Korea, and for working capital purposes.
The Company’s CEO Jon Dugdale said follow up sampling is currently in progress at Peninsula’s lithium and zinc-silver projects with the objective of defining drill targets.
He also said metallurgical testing is being finalised to determine sealable concentrate grades for key graphite projects, adding that preparations are well advanced to commence drilling of the high-grade gold-silver target at the Osu Project in South Korea.
“We are extremely pleased with the strong demand from both new and existing shareholders and the support shown by institutional and sophisticated investors for this Placement,” Mr Dugdale stated.
“We now plan to accelerate exploration of our highly-prospective graphite, lithium, gold-silver and zinc-silver projects, with the objective of defining multiple targets for drilling.”