The funds will also help the company complete testing to produce high-purity spherical graphite for the Korean lithium-ion battery market.
As well as the placement at 0.6 cents per share, Peninsula intends to raise a further $600,000 to $1 million through a share purchase plan (SPP).
This will allow existing shareholders to participate in the capital raising on the same terms as the placement.
Peninsula’s managing director Jon Dugdale said: "We are very pleased to have received commitments to this $0.6 million placement that will allow us to commence drilling of our high-grade Gapyeong flake-graphite target.
“The key objectives of the company, in the short term, are to establish a flake-graphite resource in Korea and, in parallel, complete metallurgical testing to produce high-purity, value-added, spherical graphite, right on the doorstep of South Korean lithium-ion battery anode producers.”
Funds from the placement and SPP will also be allocated for drill testing at the Ubeong Zinc Project and/or Osu Gold-Silver Project.
The SPP provides the opportunity for eligible shareholders to subscribe for up to $15,000 worth of shares free of brokerage and fees.
This arrangement requires a waiver from the ASX to permit the SPP issue price to be the same as the placement issue price.
Subject to shareholder approval
It would take the total amount raised from the placement and SPP up to $1.6 million before costs, with directors intending to participate up to $70,000, of which a component will be subject to shareholder approval.
Also requiring the approval of shareholders in regards to the placement and SPP is the issue of one option with an exercise price of 1 cent per option for every two placement or SPP shares held.
If approved, the options will have an expiry date of April 30, 2020.