Peel Mining Ltd - Peel Set to Regain Control of Mallee Bull Delivering High-Grade Copper and Potential Critical Mass

What happened?

What's happened?

Peel Mining Ltd (ASX: PEX, “Peel”) has announced that it intends to acquire an additional 50% share of the Mallee Bull Joint Venture, taking Peel’s ownership in the project to 100%.

What are the key highlights?

Peel has acquired the remaining 50% from CBH Resource Ltd by exercising its pre-emptive right, matching a third party’s unconditional cash offer of $17 million.
To fund the acquisition, the Company is undertaking a capital raising of $17.1 million comprising of a $10.5m placement and a $6.6m entitlement offer (before costs).
Mallee Bull is one of Australia’s highest-grade undeveloped copper deposits and is located ~50km northeast of Peel’s Wagga Tank-Southern Nights discovery.
100%-ownership of Mallee Bull consolidates Peel’s global resource base to more than 10Mt, with an experienced team focused on improving the confidence and growing the resources for establishment of ore reserve and mining inventory.

For more information, please refer to the announcement linked below.

Managing Director's summary

Rob Tyson Managing Director of Peel Mining Ltd has provided a statement.

Rob Tyson

Managing Director, Peel Mining Ltd

“The consolidation of Mallee Bull will deliver a number of very important outcomes for our business plan, those being: control, critical mass and copper. Bringing Mallee Bull back into the fold makes us masters of our own destiny once again, however, most importantly, it delivers potential critical mass for our goal of establishing a stand-alone operation in our region of the Cobar Basin, with the added benefit of re-positioning the Company’s primary metal exposure to copper in a rising copper price market. The Mallee Bull JV also includes the May Day gold-polymetallic deposit where we see an exploration opportunity to add shallow gold resources to our asset base - a potential boost towards our critical mass aspirations. The support and demand we have received for the capital raising from existing and new institutional, sophisticated and professional investors has been overwhelming, reaffirming and validating our belief in the project and the Company’s strategy."