Peako Eastman project

Peako raising up to $1.2m to help fund Eastman PGE Project drilling

Peako Limited (ASX:PKO) reports it has launched a 1 for 5 non-renounceable pro-rata entitlement offer to raise additional capital up to about $1.2 million (before costs).

Funds will be used to support Peako’s exploration activities including supporting the ability to carry out infill drilling at its Eastman PGE Project, prior to commencement of this year’s wet season.

As part of the entitlement offer, new shares will be issued at $0.02 per share together with the grant of one new option for every new share subscribed, exercisable at $0.05 on or before 30 September 2025.

Eligible Peako shareholders will also be given first opportunity to apply for additional shortfall shares beyond their 1 for 5 entitlements.

The company reports in the event that demand for the additional shortfall shares exceeds the number of shortfall shares that are available (if any), then there will be a scale back on a pro-rata basis in accordance with their entitlement.

The offer price represents a 17.6% premium to the $0.017 closing price of Peako shares on the ASX on 2 August 2022 (the last trading day of Peako shares before the announcement), as well as to the company’s 5-day VWAP of $0.017.

The offer is not underwritten.

“Chairman Geoff Albers and his associates has committed to take up at least 80% of their entitlements”

Peako notes that its largest shareholder group, representing the holdings of Chairman Geoff Albers and his associates (Albers Shareholders), has committed to take up at least 80% of their entitlements under the offer, amounting to an investment of about $320,000.

The Albers Shareholders presently hold 32.80% of Peako’s issued share capital and if no other shareholders were to take up their entitlements, there is a chance that the Albers shareholders’ voting power could increase by a maximum of 4.14% to 36.94%.

Commenting on the capital raise, Peako Chairman Geoff Albers said: “Having reviewed various funding options available to the company, the board considers a rights issue is the fairest way to allow all shareholders to participate in this exciting forward program.”

A prospectus was lodged with the Australian Securities and Investments Commission (ASIC) on 3 August.

Peako’s Eastman PGE Project is focused on the Eastman Intrusion, a ‘large’ underexplored intrusive complex that Peako considers has potential for a major PGE resource.

It is located within the Central Zone of the Halls Creek Orogen, a province with established PGE endowment.

Images: Peako Limited
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Written By Adam Orlando Editor-in-Chief Adam Orlando has more than 20 years’ experience in the media having held senior roles at various publications, including as Asia-Pacific Sector Head (Mining) at global newswire Acuris (formerly Mergermarket). Orlando has worked in newsrooms around the world including Hong Kong, Singapore, London, and Sydney.