Peel Mining launches $23 million fundraising to advance South Cobar copper project


Following the first tranche of the placement, Peel Mining will appoint Mark Okeby as President and Jim Simpson as Managing Director and Managing Director.

Perth-based explorer Peel Mining (ASX:PEX) has received binding commitments for a $23 million fundraise to advance the growth of its South Cobar copper project in western New Wales du South.

The round will include a two-tranche placement and share purchase plan to issue approximately 127.7 million new Peel shares at $0.18 each.

The funds will be invested in the continued growth of South Cobar’s copper resources and will include exploration permits and working capital, with the aim of moving forward with development.

Peel plans to expand and delineate the resource based on a detailed technical review outlining the potential scale of the project in light of significant high-grade results at the Mallee Bull and Wirlong targets.

Peel is aiming for a 10-year self-sustaining copper operation at South Cobar using simple, clean metallurgy to produce top quality copper concentrates.

Fundamental investment

Peel’s placement will begin with a $3.6 million foundational investment from experienced minerals explorer Josh Pitt, who helped discover the Golden Grove zinc-copper mine (currently owned by 29Metals, ASX: 29M ).

Mr. Pitt is the founder and majority shareholder of Red Hill Iron (ASX: RHI), which recently sold a stake in its eponymous iron ore project to joint venture partner Mineral Resources (ASX: MRL).

Peel directors Jim Simpson, Graham Hardie and Simon Hadfield also endorsed the placement.

Mr Simpson has pledged $500,000 for 2.77 million shares and will be appointed chief executive and managing director of Peel after the first tranche is completed.

Mr. Hardie will invest $250,000 for 1.38 million shares while Mr. Hadfield will commit $100,000 for approximately 550,000 shares.

The share purchase plan will be offered to eligible shareholders to raise up to $2 million at the same issue price as the placement, bringing Peel’s total capital to $23 million.

new president

Peel announced the appointment of experienced mining company executive Mark Okeby as chairman following the completion of the first tranche of the placement.

Mr. Okeby began his resource career in the 1980s and has over 30 years’ experience as a director of ASX-listed mining and exploration companies.

He is currently a director of Red Hill and Capricorn Metals (ASX: CMM), and previously served on the boards of Regis Resources (ASX: RRL), Hill 50, Abelle, Metals X (ASX: MLX) and Westgold Resources ( ASX::WGX).

Mr. Okeby played a significant role in Capricorn’s transition from a small gold developer to one of Australia’s newest gold producers, and a similar role in transforming Regis into one of largest producers in the country.

He was instrumental in selling Red Hill’s 40% stake in Red Hill’s iron ore joint venture to Mineral Resources last year for more than $400 million in cash, milestone payments and Royalties.

Mr. Okeby has an in-depth knowledge of the Australian resource industry and the regulatory regimes relating to the development and operation of mines.

He also has significant experience in project development, financing and corporate transactions.

Previous Newshub-Reid Research poll finds majority of Kiwis support government review of capital gains tax
Next A “tragedy of capitalism”? BLM faces growing questions over millions of donations - JONATHAN TURLEY