Peninsula Mines sells tungsten project to focus on graphite
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.
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