Peel Mining to raise $5.1m

Peel Mining aims to raise $5.1 million through a share placement priced at 49 cents per share to new and existing institutional investors.

The major investor in the placement will be Platypus Asset Management, with the funds management company subscribing for 5.5 million shares.

Existing Peel shareholder Acorn Capital will be taking 2.5 million shares in the placement.

The other 2.2 million shares are expected to be placed with other existing shareholders.

Once the issue is completed, it will leave Platypus with 4.23 per cent of the company and Acorn with 6.54 per cent.

The funds raised will be used to cover the Perth based resource explorer’s share of costs at its Mallee Bull copper deposit in New South Wales of which it has a 50 per cent stake.

The other 50 per cent is owned by Peel Mining’s Sydney based partner CBH Resources once it invests a further $3.33 million in the project.

Other funds from Peel’s placement will be used to acquire a 20,000 acre portion of Wirchilleba Station in NSW and develop the explorer’s other projects in Australia and New Zealand, including Peel’s Western Australian Apollo Hill project.

Peel Mining’s shares are currently trading at 48 cents.