Peninsula Mines Ltd (ASX:PSM) aims to double the $600,000 raised in a placement to sophisticated and professional investors by inviting eligible shareholders to participate in a share purchase plan (SPP).
The SPP is offered to shareholders with a registered address in Australia or New Zealand on August 24, 2018, on the same terms as the placement.
This will include the issue of up to 100 million fully-paid ordinary shares at 0.6 cents per share to raise approximately $600,000.
In addition, for every two placement shares issued, Peninsula will issue one option with an exercise price of 1 cent per option and an expiry date of April 30, 2020.
The total amount raised from the placement and SPP will be up to $1.6 million before costs.
Funds raised are intended to primarily be used to fund proposed drilling of the company's flagship Gapyeong Flake Graphite Project in South Korea.
They are expected to also allow Peninsula to complete metallurgical testing aimed at producing high-purity spherical graphite to supply the lithium-ion battery anode market in South Korea.
Peninsula’s managing director Jon Dugdale said, “The key objectives 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, on the doorstep of South Korean lithium-ion battery anode producers.”
The company also intends to carry out drill testing at its Ubeong Zinc Project and/or Osu Gold-Silver Project, both also in South Korea, should sufficient funding be raised.