Peninsula Mines sells tungsten project to focus on graphite

By Trevor Hoey. Published at Aug 29, 2017, in Small Caps

Peninsula Mines (ASX:PSM) has divested one of its assets in South Korea, the Daewha molybdenum-tungsten project. The sale will generate proceeds of nearly $700,000.

Daehwa Molybdenum-Tungsten Project includes three contiguous granted mining tenements that contains two historical underground molybdenum / tungsten mines, Daehwa and Donsan, located approximately 100 kilometres south-east of Seoul in Chungbuk Province in central South Korea.

Highlighting the fact that this project was non-core with regard to PSM’s long-term strategy, Managing Director, Jon Dugdale said, “We have monetised the Daewha project and can now focus our attention on drilling the Ubeong zinc-lead-silver and copper-gold project, while advancing our graphite development plans.”

Indeed, there have been some promising developments at Ubeong with PSM recently commencing drilling at sites which have yielded rock chip sample results of up to 48.8% zinc (Copperhead target), and 25.6% zinc and 2.3% copper (Cobra target).

Funds from the sale of the Daewha project will assist in financing ongoing drilling. Investors responded positively to recent news relating to upcoming drilling at Ubeong and a flake graphite supply agreement with the company’s shares increasing more than 10%.

Of course, it should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

Similarly, there could be increased support for PSM following today’s news as it reflects a more focused strategy, and from a material perspective, improves the company’s financial position.

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.

Publishers Notice

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.

Thanks for subscribing!