Peel Mining (ASX:PEX) has successfully raised $6 million through the issue of 15 million shares at $0.40 as part of an oversubscribed placement to sophisticated and institutional investors.
Shares in Peel have more than doubled over the past month, driven by the high-grade zinc-lead-silver discovery made at the Southern Nights prospect within its Wagga Tank Project near Cobar in New South Wales.
Recent assay results from Southern Nights include 21 metres at 31.02% zinc, 12.05% lead, 258 g/t silver, 1.43 g/t gold from 194 metres.
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Funds raised will allow accelerated evaluation of the new Southern Nights discovery, which will include a drilling program of up to 30,000 metres on the tenements.
Proceeds from the $6 million capital raising will also be used to fund pre-development activities at the 50%-owned Mallee Bull polymetallic project, also located in the Cobar Basin.
Rob Tyson, managing director, commented
“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.
“Early indications are that the project has the potential to host a major mineralised system.”
Peel’s projects cover more than 5,000 square kilometres across New South Wales and Western Australia.
- Mallee Bull (50%, NSW): An advanced copper polymetallic deposit that remains open in many directions;
- Wagga Tank (100%, NSW): A polymetallic VHMS-type deposit that also hosts the recent Southern Nights discovery prospect;
- Cobar Superbasin (60%, NSW): Farm-in agreement that offers funded strategic greenfields exploration potential along with the new Wirlong copper discovery;
- Apollo Hill (100%, WA): Exploration project that hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike; and
- Attunga (100%, NSW): A high-grade tungsten deposit.
The Mallee Bull, Cobar Superbasin and Wagga Tank projects are all located near Cobar in western New South Wales.