Peel Mining sells $7m shares in Saturn Metals

Peel Mining has sold a 19 per cent stake in Saturn Metals, worth $7 million, and is no longer the major shareholder. 

The sale, brokered by Canaccord Genuity, involved Peel Mining selling 16 million shares for 45 cents each.

Peel Mining retains 4 million shares in Saturn Metals, which equates to a 4.8 per cent stake.  

In a statement, the company said the proceeds would be used to continue advancing its cobar assets, including its Wagga Tank-Southern Nights and Mallee Bull deposits.

The sale provides a big boost to Peel's cash position - its most recent quarterly report showed the company had just $1.5 million in cash at the end of March.

Peel Mining managing director Rob Tyson said it was with considerable reluctance Peel had sold its holding in Saturn Metals, which had performed well since its initial public offering in 2018.

“However, Peel’s core focus remains keenly fixed on our Cobar as assets including Wagga Tank-Southern Nights and Mallee Bull,” Mr Tyson said.

“The timely sale of Saturn will contribute over $7 million of funding, enabling the company to carry out significant work programs at our 100 per cent owner and joint ventured properties, with the primary aim of moving towards development.”

In 2018, Peel Mining completed the spin out of Saturn Metals through an initial public offering.

Shares in Peel Mining were down 2 cents to 16 cents at 2pm AWST.