- Minerals explorer Peel Mining (PEX) has kicked off the week in a trading halt ahead of an upcoming capital raise
- The trading halt is set to be lifted on or before March 10, when a formal disclosure regarding the raise is made
- Peel Mining flagged a requirement for further capital in its most recent quarterly activities report following a period of heavy expenditure
- The company has not indicated how much it plans to raise or how exactly it plans to use the funds
- Prior to the trading halt, Peel Mining shares traded at 31 cents
Minerals explorer Peel Mining (PEX) has kicked off the week in a trading halt ahead of an upcoming capital raise.
The company’s shares will remain in a trading halt for two days for the purpose of considering, planning and executing a capital raising.
Based on Peel’s estimates, a formal disclosure regarding the raise and commencement of trading is expected on or before Wednesday March 10.
Despite there being no explicit mention from Peel as to how much it is seeking in the raise or how it plans to spend the funds, its most recent quarterly activities report revealed cash and equivalents had come up short over the period.
Peel undertook significant expenditure over the quarter, predominantly stemming from its $17 million Melee Bull acquisition, which was announced in January.
Peel advised it had sufficient cash reserves, which came in at roughly $5.1 million, to continue with its current activities but would require additional capital within the next 12 months.
In other recent developments, the company intersected high-grade copper and silver at its Peel South Cobar Project in New South Wales.
Best results included seven metres at 5.78 per cent copper and 19g/t silver from 249 metres and 91 metres at 0.93 per cent copper and 5g/t silver from 254 metres.
It forms part of the company’s ongoing efforts to advance its deposits to a mineable resource status and support a new processing plant.
Prior to the trading halt, Peel Mining shares traded at 31 cents.