Peninsula funded to drill flake-graphite Resource target
Peninsula Mines Limited (ASX:PSM) has raised approximately $600,000 to fund proposed drilling at its flag-ship Gapyeong Flake-Graphite Project and complete testing to produce high-purity spherical graphite for the Korean lithium-ion battery market in South Korea
The funds raised through a placement of shares at an issue price of 0.6 cents per share to sophisticated investors, will be supplemented by a Share Purchase Plan (SPP) to raise a further $0.6 million to $1.0 million from existing shareholders to participate on the same terms as the Placement.
The total amount raised from the Placement and SPP will be up to $1.6 million before costs. The SPP does require a waiver from the ASX to permit the SPP issue price to be the same as the Placement issue price.
In addition to funding drilling at Gapyeong and metallurgical testing aimed at producing high-purity spherical graphite to supply the lithium-ion battery market, the funds raised from the Placement and SPP will be used for drill testing at its Ubeong Zinc Project and/or Osu Gold-Silver Project, as well as for general working capital purposes.
Commenting on the capital raising, Peninsula’s Managing Director, Jon Dugdale said, “We are very pleased to have received commitments to this $0.6 million placement that will now allow us to commence drilling of our high-grade Gapyeong flake-graphite target.”
“The key objectives of the company, in the short term, are to establish a flake-graphite Resource in Korea and, in parallel, complete metallurgical testing to produce high-purity, value-added, spherical graphite, right on the doorstep of the South Korean lithium-ion battery anode producers.”
PSM has tenements and tenement applications in South Korea with fine to large and jumbo flake graphite identified. The company intends to progress these and other projects to JORC-compliant Resource definition and, potentially, development of mining and flake graphite concentrate production then high-purity spherical graphite for lithium-ion battery applications and/or other flake-graphite markets in Korea.
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