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Peak Minerals (ASX:PUA) eyes $4.9m placement for WA exploration

Materials
ASX:PUA      MCAP $3.124M
21 October 2021 18:20 (AEST)
Peak Minerals (ASX:PUA) - Principal Geologist, Barbara Duggan

Source: Barbara Duggan/LinkedIn

Peak Minerals (PUA) has received firm commitments to raise up to $4.9 million through a share placement to institutional and professional investors.

The new shares will be issued to investors at 1.5 cents which represents a 6.25 per cent discount to the closing price on October 19.

The placement comprises two tranches with the first seeking to raise $2.66 million. The second tranche is subject to shareholder approval and is planned to raise around $2.24 million.

The placement comes with one free-attaching PUAOD listed option per two new shares issued.

Further, company directors have shown their commitments and will subscribe for roughly 4.67 million new shares and 2.33 million PUAOD. This will also be subject to shareholder approval.

Peak Minerals will use the money to continue exploration across its portfolio of copper projects in Western Australia. Specifically, the company is about to begin drilling at the Greenrocks project and plans to conduct exploration work at its Earaheedy and Kimberley copper projects.

CEO Jennifer Neild was pleased with the strong demand for the placement.

“We can now aggressively commence exploration across numerous intrusive targets along 22 kilometres of strike in this newly identified province. We look forward to the commencement of the drill program at our Greenrocks project, where, as we speak, preparation for drilling is underway,” Ms Neild said.

Peak’s shares ended the day 12.5 per cent in the green to close at 1.8 cents.

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