St Barbara buys into Peel

Gold miner St Barbara has taken a 9.5 per cent stake in junior explorer Peel Mining for $3.3 million, with the funds to be put towards development of Peel’s copper-gold deposits in NSW.

St Barbara made the investment in Peel by subscribing for 16 million shares in a placement priced at 20.5 cents each, representing a premium to the company’s last closing price of 19 cents.

The placement will give St Barbara a 9.5 per cent stake in Peel, and an interest in the Perth-based explorer’s Cobar Superbasin tenements in NSW, where Peel is exploring for copper at the Mallee Bull deposit, and gold and copper at the Wagga Tank deposit.

“We are pleased to welcome a company of the calibre of St Barbara to the share register,” Peel managing director Rob Tyson said.

“St Barbara’s funding commitment provides further validation of our strong belief in the mineral potential of the Cobar Superbasin.

“Furthermore, Peel will be able to draw on their extensive experience in deep, underground mining at Gwalia.

“This technical expertise is highly applicable to Cobar-style deposits, which typically show strong vertical continuity.”

In a statement, St Barbara said the investment in Peel was part of its strategy of targeted investments in early-to-advanced stage exploration through earn-in arrangements, joint ventures or direct equity investments.

Peel shares were 18.4 per cent higher to 22.5 cents each at 11:30am, while St Barbara shares were 5.4 per cent higher to $2.53 each.