Peninsula funded to drill flake-graphite Resource target

By Meagan Evans. Published at Aug 27, 2018, in Small Caps

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.

Yet it remains a speculative stock and investors and investors should take a cautious approach to any investment decision made with regard to this stock.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

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