Peninsula Mines Closed $800,000 Share Placement; Suspension on Shares Lifted

  • May 07, 2019 AEST
  • Team Kalkine
Peninsula Mines Closed $800,000 Share Placement; Suspension on Shares Lifted

Peninsula Mines Limited (ASX: PSM) Based in West Perth, Western Australia, PSM is a metals and mining company. The company operates in South Korea and has four projects; Graphite project, Gold Silver project, Lithium project and Zinc-Polymetallic project. One of the primary reasons for the company to operate in South Korea is it being one of the world’s largest producers of lithium-ion batteries, having excellent infrastructure and foreign investment incentive.

On 6th May 2019, the company announced that it has successfully closed the capital raising via placement of shares. It has received commitments for up to $800,000 (before costs) with two Directors’ intending to participate up to the amount of $100,000. However, the Directors’ participation is subject to the shareholder approval, and the meeting to seek the approval will be held in mid-June 2019.

The company is intended to issue 160 million fully-paid ordinary shares at 0.5 cents per share for the total amount of $800,000 (before costs). The new shares will be issued under the company's Listing Rule 7.1 and Listing Rule 7.1A placement capacities.

A total of 119,300,091 new shares will be issued under Listing Rule 7.1, and the remaining 20,699,909 shares will be issued under Listing Rule 7.1A. The new shares will rank equally with the existing shares on issue, and after the placement, the company will be having a total of 1,022,872,087 fully paid ordinary shares on issue.

Use of funds: The proceeds from the share placement will be used towards:

  • Proposed drilling at the company's Gapyeong Flake-Graphite Project in South Korea in a partnership with KORES.
  • Working capital purposes.
  • Metallurgical testing aimed at producing high-purity spherical graphite, which will be used to cater to the lithium-ion battery market in South Korea with its Korean partner Tera Technos.
  • Conducting due diligence at a number of highly prospective opportunities on the Korean peninsula.

Mr Richard Hennin, Managing Director of the company, said they are very pleased with the capital raising commitments of $800,000, which will help the company to resume the activity after a full review of operations. The issue price of 0.5 cents denotes a premium of 25% to the 30-day volume weighted average price VWAP. The major portion of the fundraising was from the Korean investors, which indicates strong in-country support for the future of the company.

Trading Halt and suspension: Earlier on 1st May 2019, the company had requested the ASX to halt the trading of its securities due to a pending announcement regarding a proposed capital raising. The halt was to be lifted on 3rd May 2019 or when the announcement is released to the market, whichever is earlier.

On 3rd May 2019, it couldn’t release the announcement and wanted more time to manage its continuous disclosure obligations. Therefore, the group requested ASX to voluntarily suspend the trading of shares under the Listing Rule 17.2 until 6th May 2019 or when the announcement gets released, whichever is earlier.

As on 6th May 2019, the company has finally released the pending announcement, and the suspension has been lifted from yesterday’s trading session.

Technical Outlook: The market capitalisation of the company is $3.45 million. The 52-week high and low of the stock stands at $0.013 and $0.003, respectively. The stock is currently quoted on ASX at $0.005 (as on 07 May 2019). In the last one year, the stock has delivered a negative return of 50%, and the one month return stands at 25%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. We are neither licensed nor qualified to provide investment advice through this platform.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK