Peninsula Mines will use $1.68 million raised in a private placement to immediately accelerate exploration of Peninsula’s highly-prospective graphite, lithium, gold-silver and zinc-silver projects in South Korea.
The placement will be conducted in two tranches and will involve a total of around 80 million shares priced at A$0.021. It has been overwhelmingly supported by existing and new shareholders and closed oversubscribed.
The company has completed the first tranche, raising $1.4 million. A further $275,200 from Peninsula’s major shareholder Aurora Minerals and directors is subject to shareholder approval at an upcoming annual general meeting.
Peninsula’s chief executive office Jon Dugdale says, “We are delighted by the strong support from new investors and existing shareholders in this capital raising.
“This represents a strong endorsement of our plan to immediately accelerate exploration of our highly-prospective graphite, lithium, gold-silver and zinc-silver projects in South Korea, then drill-test the key targets.”
Peninsula’s portfolio of projects in South Korea consists of:
Graphite – Wolmyeong, Daewon and Yongwon;
Lithium – Daehyeon and Dongsugok;
Gold-silver – Osu; and
Zinc-silver – Ubeong.
Sampling of the company’s key graphite projects has continued to generate high total graphitic carbon (TGC) grades – Wolmyeong up to 86%, Daewon up to 24.8% and Yongwon up to 18%.
Yongwon’s graphite schist has been traced over a 300 metre strike with widths up to 20 metres. The majority of the graphite flakes observed are large, with some very large, jumbo sized flakes observed.
Daewon’s graphite schist has been traced over a 350 metre strike with widths up to 10 metres. Sampled graphite occurs as regularly disseminated, highly oriented graphite flakes including some large flakes.
Wolmyeong’s graphite schist has been traced over a 9km strike with testing indicating predominantly amorphous fine-grained type graphite.
Sampling is currently under way at the lithium and zinc-silver projects with the objective of defining drilling targets. Metallurgical testing is also being finalised to determine saleable concentrate grades for key graphite projects.
Preparations are also well advanced to commence drilling of the high-grade gold-silver target at the Osu project.
Peninsula also has an interest in the Camel Hills project in the Yilgarn Block of Western Australia. It is prospective for copper, nickel, gold and magnetite iron ore.