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Peninsula Energy (ASX:PEN) (Peninsula or Company) is pleased to announce that it has entered into a subscription agreement with Concentrate Capital Partners Limited (CCP), an independent investment partner to DRA Global.
Peninsula Energy (ASX:PEN) (Peninsula or Company) is pleased to announce that it has entered into a subscription agreement with Concentrate Capital Partners Limited (CCP), an independent investment partner to DRA Global.
Highlights
- DRA Global investment partner Concentrate Capital Partners has subscribed for 979,696 fully paid PEL shares at A$0.80 per share (A$781,357)
- DRA Projects SA to complete mining, processing and engineering components of the Pre-Feasibility Study for the Karoo Projects
- Pre-Feasibility Study will incorporate:
- results from independent metallurgical test work completed during 2014-2016
- additional metallurgical testing to confirm the process design
- updated mine design and layout
- specification of infrastructure requirements directly associated with the mine
- capital and operating cost estimates
Peninsula will issue 976,696 shares to CCP at an issue price of $0.80 upon receipt of invoice from DRA Projects SA (DRA). CCP will assume full responsibility for payment to DRA for services provided under the Pre-Feasibility Study (PFS).
This agreement also contains an option for CCP to fund post-PFS activities using the same mechanism. Post-PFS activities include the Bankable Feasibility Study, reserve drilling and other related activities.
Peninsula has previously appointed DRA to complete the preliminary mining and process engineering and enhanced metallurgical test work to support the PFS at the Karoo Projects in South Africa. The PFS follows a preliminary technical and economic assessment concluded by DRA in late 2013 and additional metallurgical test work conducted during 2014-2016.
The current metallurgical testing is primarily aimed at establishing the economic benefits of carbonate removal ahead of leaching along with confirmatory hydrometallurgical test work. Pending the outcome of this test work phase, the PFS process design will consider the incorporation of a carbonate rejection step ahead of leaching to optimise the process flow sheet and minimise operating costs.
The PFS will also include preliminary mine design and layout (both open pit and underground), all engineering works associated with the proposed mine, plant tailings storage facility and inplant infrastructure. Managing Director and CEO Mr. John Simpson stated “The Company is confident this work will provide us with clear parameters for the future development at the Karoo Projects. We are pleased to partner with DRA and Concentrate Capital Partners in moving the Karoo Projects toward production”.
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