19/09/2016 - 13:55

Peel, Cauldron raise funds

19/09/2016 - 13:55

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Local explorers Cauldron Energy and Peel Mining have raised a combined $5.5 million from investors to fund ongoing work at their respective projects.

Peel, Cauldron raise funds
Exploration work at Peel's Mallee Bull copper-polymetallic deposit in New South Wales.

Local explorers Cauldron Energy and Peel Mining have raised a combined $5.5 million from investors to fund ongoing work at their respective projects.

Peel announced today it had finalised a $3 million placement priced at 16 cents per share, with the majority of the raising to be taken up by private equity firm Resource Capital Funds.

The proceeds of the raising will be used to fund Peel’s share of costs at the Mallee Bull copper-polymetallic deposit in New South Wales, as well as exploration work at its wholly owned Cobar Superbasin assets.

Peel managing director Rob Tyson said Resource Capital Fund VI would participate in $2.4 million of the raising, and would subsequently gain a 9.9 per cent stake in the company.

Meanwhile, Cauldron has executed a $2.5 million placement at 8 cents per share, representing a 30 per cent premium to its last closing price.

The raising has been placed to a new unnamed Chinese sophisticated investor.

Funds raised from the placement will be used to complete passive seismic survey work and begin field leach trials at Cauldron’s Bennet Well, which forms part of its Yanrey uranium project near Onslow.

“This placement to a key Chinese investor at such as significant premium to the market validates our considerable success in developing the project,” Cauldron chairman Tony Sage said.

Cauldron is awaiting a date to be set for the hearing of an appeal by Andrew and Nicola Forrest’s company Forrest & Forrest over Cauldron’s plans to explore for uranium at Minderoo Station, which is owned by the Forrest family.

Peel and Cauldron shares were unchanged at 16 cents and 6.2 cents each, respectively.

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